Critical Review: Capital Power (CPXWF) versus Its Rivals

Capital Power (OTCMKTS:CPXWF) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it compare to its competitors? We will compare Capital Power to related businesses based on the strength of its valuation, risk, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Insider & Institutional Ownership

29.4% of Capital Power shares are owned by institutional investors. Comparatively, 35.2% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Capital Power and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capital Power	N/A	N/A	51.82
Capital Power Competitors	$6.35 billion	$832.74 million	19.94

Capital Power’s competitors have higher revenue and earnings than Capital Power. Capital Power is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Capital Power and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital Power	N/A	N/A	N/A
Capital Power Competitors	-38.57%	13.35%	0.71%

Dividends

Capital Power pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. Capital Power pays out 136.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 275.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Capital Power and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital Power	0	0	9	0	3.00
Capital Power Competitors	930	2931	3713	179	2.41

As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 146.69%. Given Capital Power’s competitors higher possible upside, analysts clearly believe Capital Power has less favorable growth aspects than its competitors.

Summary

Capital Power competitors beat Capital Power on 8 of the 13 factors compared.

About Capital Power

Capital Power Corporation develops, acquires, owns, and operates renewable and thermal power generation facilities in Canada and the United States. It generates electricity from various energy sources, including wind, solar, waste heat, natural gas, and coal. The company owns an approximately 7,500 megawatts (MW) of power generation capacity at 29 facilities. It also manages its related electricity and natural gas portfolios by undertaking trading and marketing activities. In addition, the company engages in the development of projects, which include approximately 213 MW of renewable generation capacity in Alberta and North Carolina, 512 MW of natural gas in Alberta, and approximately 350 MW of natural gas and battery energy storage systems in Ontario. Capital Power Corporation was founded in 1891 and is headquartered in Edmonton, Canada.