Analyzing Consolidated Water (NASDAQ:CWCO) and Guangdong Investment (OTCMKTS:GGDVY)

Guangdong Investment (OTCMKTS:GGDVY) and Consolidated Water (NASDAQ:CWCO) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Dividends

Guangdong Investment pays an annual dividend of $10.76 per share and has a dividend yield of 47.9%. Consolidated Water pays an annual dividend of $0.38 per share and has a dividend yield of 1.6%. Guangdong Investment pays out 30.1% of its earnings in the form of a dividend. Consolidated Water has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Guangdong Investment and Consolidated Water’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guangdong Investment	N/A	N/A	N/A	$35.70	0.63
Consolidated Water	$180.21 million	2.14	$29.58 million	N/A	N/A

Consolidated Water has higher revenue and earnings than Guangdong Investment.

Analyst Ratings

This is a summary of current recommendations and price targets for Guangdong Investment and Consolidated Water, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guangdong Investment	0	0	0	0	N/A
Consolidated Water	0	0	1	0	3.00

Guangdong Investment currently has a consensus target price of $7.25, suggesting a potential downside of 67.71%. Consolidated Water has a consensus target price of $28.00, suggesting a potential upside of 14.85%. Given Consolidated Water’s higher possible upside, analysts clearly believe Consolidated Water is more favorable than Guangdong Investment.

Profitability

This table compares Guangdong Investment and Consolidated Water’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guangdong Investment	N/A	N/A	N/A
Consolidated Water	16.42%	17.15%	14.72%

Institutional & Insider Ownership

0.0% of Guangdong Investment shares are held by institutional investors. Comparatively, 55.2% of Consolidated Water shares are held by institutional investors. 5.6% of Consolidated Water shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Consolidated Water beats Guangdong Investment on 10 of the 11 factors compared between the two stocks.

About Guangdong Investment

Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, hotel ownership, energy project operation and management, and road and bridge operation businesses. The company's Water Resources segment provides water distribution, sewage treatment, water pipeline installation and consultancy services, constructs water supply and sewage treatment infrastructure, and sells machineries in Mainland China and Hong Kong. Its Property Investment and Development segment invests in and rents various properties in Hong Kong and Mainland China; and develops and sells properties in Mainland China. This segment also provides property management services for various commercial properties. The company's Department Stores Operation segment operates department stores in Mainland China. Its Electric Power Generation segment operates coal-fired power plants that supply electricity and steam in the Guangdong province, Mainland China. The company's Hotel Operation and Management segment operate hotels and provides hotel management services to third parties in Hong Kong and Mainland China. Its Road and Bridge segment invests in various road and bridge projects, which engages in the toll road operation and road management in Mainland China. The company's Others segment provides treasury services in Hong Kong and Mainland China, as well as corporate and other related services. It also offers financing, marketing management, environmental engineering, and water technology development and consultation services. The company was formerly known as Union Globe Development Limited and changed its name to Guangdong Investment Limited in January 1987. The company was incorporated in 1973 and is based in Central, Hong Kong. Guangdong Investment Limited operates as a subsidiary of GDH Limited.

About Consolidated Water

Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. The company produces potable water from seawater utilizing reverse osmosis technology and supply water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It offers design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.