Caribbean Utilities (OTCMKTS:CUPUF) versus Hydro One (OTCMKTS:HRNNF) Head to Head Analysis

Hydro One (OTCMKTS:HRNNF) and Caribbean Utilities (OTCMKTS:CUPUF) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Hydro One and Caribbean Utilities”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hydro One	$6.19 billion	3.76	$843.65 million	$0.75	51.81
Caribbean Utilities	N/A	N/A	N/A	$0.70	19.38

Hydro One has higher revenue and earnings than Caribbean Utilities. Caribbean Utilities is trading at a lower price-to-earnings ratio than Hydro One, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hydro One and Caribbean Utilities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	0	5	1	0	2.17
Caribbean Utilities	0	0	0	0	0.00

Insider and Institutional Ownership

0.1% of Caribbean Utilities shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Hydro One and Caribbean Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydro One	14.74%	10.52%	3.47%
Caribbean Utilities	N/A	N/A	N/A

Dividends

Hydro One pays an annual dividend of $0.95 per share and has a dividend yield of 2.4%. Caribbean Utilities pays an annual dividend of $0.66 per share and has a dividend yield of 4.9%. Hydro One pays out 126.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Caribbean Utilities pays out 94.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Caribbean Utilities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hydro One beats Caribbean Utilities on 8 of the 11 factors compared between the two stocks.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 125,000 circuit kilometers primary low-voltage distribution lines. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.

About Caribbean Utilities

Caribbean Utilities Company, Ltd. engages in the generation, transmission, and distribution of electricity in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates nine transformer substations with approximately 436 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cables. The company also provides telecommunication services. The company was incorporated in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.