Head to Head Comparison: Eversource Energy (NYSE:ES) versus Avista (NYSE:AVA)

Avista (NYSE:AVA) and Eversource Energy (NYSE:ES) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Avista and Eversource Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avista	0	4	0	0	2.00
Eversource Energy	3	6	3	0	2.00

Avista presently has a consensus price target of $39.33, indicating a potential downside of 3.46%. Eversource Energy has a consensus price target of $71.50, indicating a potential upside of 3.81%. Given Eversource Energy’s higher probable upside, analysts plainly believe Eversource Energy is more favorable than Avista.

Insider & Institutional Ownership

85.2% of Avista shares are owned by institutional investors. Comparatively, 80.0% of Eversource Energy shares are owned by institutional investors. 1.0% of Avista shares are owned by insiders. Comparatively, 0.4% of Eversource Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Avista and Eversource Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avista	$1.94 billion	1.71	$180.00 million	$2.35	17.34
Eversource Energy	$11.90 billion	2.17	$811.65 million	$3.65	18.87

Eversource Energy has higher revenue and earnings than Avista. Avista is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

Avista pays an annual dividend of $1.96 per share and has a dividend yield of 4.8%. Eversource Energy pays an annual dividend of $3.01 per share and has a dividend yield of 4.4%. Avista pays out 83.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy pays out 82.5% 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 and Eversource Energy has increased its dividend for 2 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Avista has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Eversource Energy has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avista	9.62%	7.18%	2.35%
Eversource Energy	10.22%	11.06%	2.83%

Summary

Eversource Energy beats Avista on 12 of the 16 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 Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.