Comparing Commerce Energy Group (OTCMKTS:CMNR) and NorthWestern (NASDAQ:NWE)

Commerce Energy Group (OTCMKTS:CMNR) and NorthWestern (NASDAQ:NWE) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

96.1% of NorthWestern shares are held by institutional investors. 0.9% of Commerce Energy Group shares are held by insiders. Comparatively, 0.6% of NorthWestern shares are held 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.

Profitability

This table compares Commerce Energy Group and NorthWestern’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerce Energy Group	N/A	N/A	N/A
NorthWestern	13.82%	7.56%	2.68%

Analyst Recommendations

This is a summary of current ratings and target prices for Commerce Energy Group and NorthWestern, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerce Energy Group	0	0	0	0	0.00
NorthWestern	0	2	1	1	2.75

NorthWestern has a consensus target price of $56.00, suggesting a potential downside of 15.16%. Given Commerce Energy Group’s higher possible upside, research analysts clearly believe Commerce Energy Group is more favorable than NorthWestern.

Earnings and Valuation

This table compares Commerce Energy Group and NorthWestern”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerce Energy Group	N/A	N/A	N/A	N/A	N/A
NorthWestern	$1.51 billion	2.68	$224.11 million	$3.53	18.70

NorthWestern has higher revenue and earnings than Commerce Energy Group.

Risk and Volatility

Commerce Energy Group has a beta of 17.55, suggesting that its share price is 1,655% more volatile than the S&P 500. Comparatively, NorthWestern has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.

Summary

NorthWestern beats Commerce Energy Group on 8 of the 11 factors compared between the two stocks.

About Commerce Energy Group

Commerce Energy Group Inc. through its subsidiaries provides electric power and natural gas to residential, commercial, industrial and institutional customers in California, Pennsylvania, Michigan, Maryland, New Jersey, Texas, Florida, Georgia, Nevada, and Ohio. The company was founded in 1997 and is based in Costa Mesa, California.

About NorthWestern

NorthWestern Energy Group, Inc. provides electricity and natural gas to residential, commercial, and various industrial customers. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,600 miles of electric transmission and 18,674 miles of electric distribution lines with approximately 395 transmission and distribution substations; and 2,235 miles of natural gas transmission and 5,155 miles of natural gas distribution lines with approximately 133 city gate stations in Montana. It also operates 1,310 miles of electric transmission and 2,365 miles of electric distribution lines in South Dakota with approximately 124 transmission and distribution substations; and 55 miles of natural gas transmission and 2,573 miles of natural gas distribution lines in South Dakota and Nebraska. The company provides electricity and/or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Energy Group, Inc. was founded in 1923 and is based in Sioux Falls, South Dakota.