Financial Analysis: AGL Energy (OTCMKTS:AGLNF) versus Capstone Energy+ (NASDAQ:CEPL)

AGL Energy (OTCMKTS:AGLNF) and Capstone Energy+ (NASDAQ:CEPL) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

15.3% of AGL Energy shares are held by institutional investors. 3.9% of Capstone Energy+ shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for AGL Energy and Capstone Energy+, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGL Energy	0	0	2	0	3.00
Capstone Energy+	0	2	1	0	2.33

Capstone Energy+ has a consensus target price of $20.00, suggesting a potential upside of 96.85%. Given Capstone Energy+’s higher possible upside, analysts plainly believe Capstone Energy+ is more favorable than AGL Energy.

Earnings and Valuation

This table compares AGL Energy and Capstone Energy+”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGL Energy	N/A	N/A	N/A	$1.02	5.44
Capstone Energy+	$106.00 million	3.12	$2.83 million	($3.19)	-3.18

Capstone Energy+ has higher revenue and earnings than AGL Energy. Capstone Energy+ is trading at a lower price-to-earnings ratio than AGL Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AGL Energy and Capstone Energy+’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGL Energy	N/A	N/A	N/A
Capstone Energy+	2.66%	-38.40%	18.34%

About AGL Energy

AGL Energy Limited supplies energy and other essential services to residential, small and large businesses, and wholesale customers in Australia. It operates through three segments: Customer Markets, Integrated Energy, and Investments. The company engages in retailing of electricity, gas, broadband, mobile, voice, solar, and energy products and services; and operates power generation portfolio and other assets including coal, gas and renewable generation, natural gas storage and production, and development projects. It also offers renewable energy schemes; and controls dispatch of owned and contracted generation assets, gas offtake agreements, and associated portfolio of energy hedging products. In addition, the company offers coal and gas-fired generation; and renewable energy sources, such as wind, hydro and solar, batteries and other firming technology; and gas production and storage assets. AGL Energy Limited was founded in 1837 and is based in Sydney, Australia.

About Capstone Energy+

Capstone Green Energy Corporation provides carbon reduction and on-site resilient green energy solutions. Capstone Green Energy Corporation, formerly known as Capstone Turbine Corporation, is based in VAN NUYS, CA.