Head to Head Review: Caribbean Utilities (OTCMKTS:CUPUF) vs. Pacific Gas & Electric (NYSE:PCG)

Pacific Gas & Electric (NYSE:PCG) and Caribbean Utilities (OTCMKTS:CUPUF) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Pacific Gas & Electric and Caribbean Utilities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Gas & Electric	1	3	7	0	2.55
Caribbean Utilities	0	0	0	0	0.00

Pacific Gas & Electric presently has a consensus target price of $22.20, suggesting a potential upside of 26.57%. Given Pacific Gas & Electric’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Pacific Gas & Electric is more favorable than Caribbean Utilities.

Dividends

Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Caribbean Utilities pays an annual dividend of $0.66 per share and has a dividend yield of 4.6%. Pacific Gas & Electric pays out 14.5% of its earnings in the form of a dividend. Caribbean Utilities pays out 94.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pacific Gas & Electric has increased its dividend for 1 consecutive years.

Earnings & Valuation

This table compares Pacific Gas & Electric and Caribbean Utilities”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Gas & Electric	$24.93 billion	1.89	$2.70 billion	$1.38	12.71
Caribbean Utilities	N/A	N/A	N/A	$0.70	20.59

Pacific Gas & Electric has higher revenue and earnings than Caribbean Utilities. Pacific Gas & Electric is trading at a lower price-to-earnings ratio than Caribbean Utilities, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

78.6% of Pacific Gas & Electric shares are owned by institutional investors. Comparatively, 0.1% of Caribbean Utilities shares are owned by institutional investors. 0.2% of Pacific Gas & Electric shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Pacific Gas & Electric and Caribbean Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Gas & Electric	12.25%	12.48%	2.78%
Caribbean Utilities	N/A	N/A	N/A

Summary

Pacific Gas & Electric beats Caribbean Utilities on 12 of the 14 factors compared between the two stocks.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.

About Caribbean Utilities

Caribbean Utilities Company, Ltd. engages in the generation, transmission, and distribution of electricity in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates nine transformer substations with approximately 436 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cables. The company also provides telecommunication services. The company was incorporated in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.