Edison International (NYSE:EIX) versus Power Assets (OTCMKTS:HGKGY) Head to Head Comparison

Edison International (NYSE:EIX) and Power Assets (OTCMKTS:HGKGY) are both large-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Valuation and Earnings

This table compares Edison International and Power Assets”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edison International	$17.60 billion	1.16	$1.55 billion	$7.05	7.53
Power Assets	$117.77 million	116.25	$784.46 million	N/A	N/A

Edison International has higher revenue and earnings than Power Assets.

Volatility & Risk

Edison International has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Institutional & Insider Ownership

89.0% of Edison International shares are held by institutional investors. 1.2% of Edison International shares are held by company insiders. Comparatively, 1.0% of Power Assets shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Edison International and Power Assets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edison International	16.00%	12.11%	2.33%
Power Assets	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Edison International and Power Assets, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edison International	1	5	9	0	2.53
Power Assets	0	0	0	0	0.00

Edison International currently has a consensus target price of $76.35, suggesting a potential upside of 43.81%. Given Edison International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Edison International is more favorable than Power Assets.

Dividends

Edison International pays an annual dividend of $3.31 per share and has a dividend yield of 6.2%. Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 7.5%. Edison International pays out 47.0% of its earnings in the form of a dividend. Edison International has raised its dividend for 23 consecutive years.

Summary

Edison International beats Power Assets on 12 of the 15 factors compared between the two stocks.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.