CLP (OTCMKTS:CLPHY) and Avista (NYSE:AVA) Head to Head Comparison

Avista (NYSE:AVA) and CLP (OTCMKTS:CLPHY) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Dividends

Avista pays an annual dividend of $1.96 per share and has a dividend yield of 5.1%. CLP pays an annual dividend of $0.29 per share and has a dividend yield of 3.4%. Avista pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avista has increased its dividend for 23 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Avista and CLP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avista	$1.94 billion	1.59	$180.00 million	$2.34	16.31
CLP	$11.66 billion	1.87	$1.52 billion	N/A	N/A

CLP has higher revenue and earnings than Avista.

Profitability

This table compares Avista and CLP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avista	9.63%	7.28%	2.39%
CLP	N/A	N/A	N/A

Institutional and Insider Ownership

85.2% of Avista shares are owned by institutional investors. 0.9% of Avista shares are owned 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.

Risk and Volatility

Avista has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, CLP has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Avista and CLP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avista	1	1	0	0	1.50
CLP	0	0	0	0	0.00

Avista presently has a consensus target price of $38.00, suggesting a potential downside of 0.45%. Given Avista’s stronger consensus rating and higher possible upside, research analysts clearly believe Avista is more favorable than CLP.

Summary

Avista beats CLP on 9 of the 14 factors compared between the two stocks.

About Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.