Critical Analysis: Power Assets (OTCMKTS:HGKGY) and Iberdrola (OTCMKTS:IBDRY)

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

Institutional & Insider Ownership

0.0% of Iberdrola shares are held by institutional investors. 1.0% of Power Assets shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Power Assets pays an annual dividend of $0.16 per share and has a dividend yield of 2.2%. Iberdrola pays an annual dividend of $1.76 per share and has a dividend yield of 2.0%. Iberdrola pays out 48.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Power Assets and Iberdrola”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Assets	$117.77 million	130.02	$784.46 million	N/A	N/A
Iberdrola	$48.42 billion	2.97	$6.07 billion	$3.61	23.89

Iberdrola has higher revenue and earnings than Power Assets.

Risk and Volatility

Power Assets has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Power Assets and Iberdrola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Assets	N/A	N/A	N/A
Iberdrola	12.10%	8.99%	3.42%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Power Assets and Iberdrola, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Assets	0	0	0	0	0.00
Iberdrola	1	3	2	1	2.43

Summary

Iberdrola beats Power Assets on 10 of the 14 factors compared between the two stocks.

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.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.