Contrasting SSE (OTC:SSEZF) and Origin Energy (OTCMKTS:OGFGY)

Origin Energy (OTCMKTS:OGFGY) and SSE (OTC:SSEZF) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Profitability

This table compares Origin Energy and SSE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Energy	N/A	N/A	N/A
SSE	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Origin Energy and SSE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Energy	0	0	1	0	3.00
SSE	0	0	0	0	0.00

Origin Energy currently has a consensus target price of $12.05, indicating a potential upside of 66.21%. Given Origin Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Origin Energy is more favorable than SSE.

Earnings & Valuation

This table compares Origin Energy and SSE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Energy	N/A	N/A	N/A	$0.48	15.17
SSE	N/A	N/A	N/A	$0.21	119.40

Origin Energy is trading at a lower price-to-earnings ratio than SSE, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

40.4% of SSE shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Origin Energy pays an annual dividend of $0.42 per share and has a dividend yield of 5.8%. SSE pays an annual dividend of $0.87 per share and has a dividend yield of 3.5%. Origin Energy pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SSE pays out 419.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Origin Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Origin Energy beats SSE on 6 of the 8 factors compared between the two stocks.

About Origin Energy

Origin Energy Limited, an integrated energy company, engages in the exploration and production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefied natural gas in Australia and internationally. The company operates through, Energy Markets, and Integrated Gas segments. Its exploration and production portfolio includes the Bowen and Surat basins in Queensland; the Browse basin in Western Australia; and the Cooper-Eromanga basin in Queensland. The company also generates electricity from coal, wind, pumped hydro, and solar plants; sells electricity, natural gas, and LPG; and provides GreenPower products. In addition, it offers electric and gas hot water systems. Origin Energy Limited was incorporated in 1946 and is based in Barangaroo, Australia.

About SSE

SSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.