Contrasting China Resources Power (OTCMKTS:CRPJY) & Southern (NYSE:SO)

China Resources Power (OTCMKTS:CRPJYGet Rating) and Southern (NYSE:SOGet Rating) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Profitability

This table compares China Resources Power and Southern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Resources Power N/A N/A N/A
Southern 10.09% 11.35% 2.91%

Risk and Volatility

China Resources Power has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Southern has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for China Resources Power and Southern, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Resources Power 0 0 0 0 N/A
Southern 2 5 4 0 2.18

Southern has a consensus price target of $73.67, suggesting a potential upside of 0.02%. Given Southern’s higher probable upside, analysts clearly believe Southern is more favorable than China Resources Power.

Insider & Institutional Ownership

60.6% of Southern shares are held by institutional investors. 0.4% of Southern shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares China Resources Power and Southern’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Resources Power $8.97 billion 0.98 $977.41 million N/A N/A
Southern $23.11 billion 3.39 $2.41 billion $2.16 34.10

Southern has higher revenue and earnings than China Resources Power.

Dividends

China Resources Power pays an annual dividend of $0.86 per share and has a dividend yield of 3.1%. Southern pays an annual dividend of $2.64 per share and has a dividend yield of 3.6%. Southern pays out 122.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern has increased its dividend for 22 consecutive years. Southern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Southern beats China Resources Power on 12 of the 14 factors compared between the two stocks.

About China Resources Power (Get Rating)

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power projects, hydro-electric projects, and other clean and renewable energy projects. As of December 31, 2020, the company had 37 coal-fired power plants, 119 wind farms, 25 photovoltaic power plants, 2 hydroelectric plants, and 3 gas-fired plants with total attributable operational generation capacity of 43,365 MW. It also engages in coal mining activities; and undertakes heat and power co-generation, coal-electricity integration, and other projects. In addition, the company is involved in the power sale, distribution network construction and operation, distributed energy resource, and other businesses. Further, it provides various energy solutions. The company was founded in 2001 and is based in Wanchai, Hong Kong. China Resources Power Holdings Company Limited is a subsidiary of CRH (Power) Limited.

About Southern (Get Rating)

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services segments. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations. In addition, it owns and/or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facility; and constructs, operates, and maintains 76,289 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 8.7 million electric and gas utility customers. Further, the company offers digital wireless communications and fiber optics services. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

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