Analyzing NiSource (NYSE:NI) and Chubu Electric Power (OTCMKTS:CHUEF)

Chubu Electric Power (OTCMKTS:CHUEF) and NiSource (NYSE:NI) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Chubu Electric Power and NiSource”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chubu Electric Power	N/A	N/A	N/A	($3.17)	-5.31
NiSource	$6.64 billion	2.96	$929.50 million	$1.88	21.78

NiSource has higher revenue and earnings than Chubu Electric Power. Chubu Electric Power is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chubu Electric Power and NiSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chubu Electric Power	N/A	N/A	N/A
NiSource	13.20%	7.95%	2.57%

Institutional and Insider Ownership

9.6% of Chubu Electric Power shares are owned by institutional investors. Comparatively, 91.6% of NiSource shares are owned by institutional investors. 0.4% of NiSource shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chubu Electric Power and NiSource, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chubu Electric Power	0	0	0	0	0.00
NiSource	0	2	10	0	2.83

NiSource has a consensus price target of $49.64, indicating a potential upside of 21.22%. Given NiSource’s stronger consensus rating and higher possible upside, analysts clearly believe NiSource is more favorable than Chubu Electric Power.

Summary

NiSource beats Chubu Electric Power on 11 of the 11 factors compared between the two stocks.

About Chubu Electric Power

Chubu Electric Power Company, Incorporated, together with its subsidiaries, engages in the generation, transmission, distribution, and retail of electricity in Japan and internationally. The company operates through three segments: JERA, Power Grid, and Miraiz. It generates electricity through geothermal, nuclear, hydroelectric, wind, biomass, and solar sources. The company is also involved in the fuel upstream, power generation procurement, and wholesale of electricity and gas businesses; and provides power network services. In addition, it engages in the construction for the development and maintenance of electric utilities-related facilities; and manufacture of materials and machinery for electric utilities-related facilities. Further, the company is involved in the gas supply and real estate activities, as well as life-related business about medical and health. Chubu Electric Power Company, Incorporated was founded in 1889 and is headquartered in Nagoya, Japan.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.