Critical Analysis: Algonquin Power & Utilities (NYSE:AQN) & Centrica (OTCMKTS:CPYYY)

Algonquin Power & Utilities (NYSE:AQNGet Rating) and Centrica (OTCMKTS:CPYYYGet Rating) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation & Earnings

This table compares Algonquin Power & Utilities and Centrica’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Algonquin Power & Utilities $2.29 billion 4.06 $264.86 million $0.30 45.90
Centrica $20.27 billion 0.29 $1.66 billion N/A N/A

Centrica has higher revenue and earnings than Algonquin Power & Utilities.

Risk and Volatility

Algonquin Power & Utilities has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Centrica has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

40.0% of Algonquin Power & Utilities shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Algonquin Power & Utilities and Centrica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Algonquin Power & Utilities 8.27% 7.05% 2.82%
Centrica N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations for Algonquin Power & Utilities and Centrica, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Algonquin Power & Utilities 0 5 3 0 2.38
Centrica 0 2 5 0 2.71

Algonquin Power & Utilities currently has a consensus target price of $16.29, indicating a potential upside of 18.27%. Given Algonquin Power & Utilities’ higher possible upside, equities analysts clearly believe Algonquin Power & Utilities is more favorable than Centrica.

Summary

Algonquin Power & Utilities beats Centrica on 6 of the 11 factors compared between the two stocks.

About Algonquin Power & Utilities

(Get Rating)

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada, the United States, Chile, and Bermuda. It generates and sells electrical energy through renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately 2.3 gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems. As of December 31, 2021, it serves approximately 307,000 electric connections; 373,000 natural gas connections; and 413,000 regulated water distribution and wastewater collection utility systems. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

About Centrica

(Get Rating)

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Upstream segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, home electrical, and gas and kitchen appliances; and heating, ventilation, and air conditioning equipment, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.

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