Financial Analysis: Summer Energy (OTCMKTS:SUME) & Unitil (NYSE:UTL)

Summer Energy (OTCMKTS:SUME) and Unitil (NYSE:UTL) are both small-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Summer Energy and Unitil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summer Energy	N/A	N/A	N/A
Unitil	9.32%	9.04%	2.62%

Earnings & Valuation

This table compares Summer Energy and Unitil”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summer Energy	N/A	N/A	N/A	N/A	N/A
Unitil	$494.80 million	1.83	$47.10 million	$2.89	17.47

Unitil has higher revenue and earnings than Summer Energy.

Volatility and Risk

Summer Energy has a beta of -174.55, suggesting that its share price is 17,555% less volatile than the S&P 500. Comparatively, Unitil has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

76.8% of Unitil shares are held by institutional investors. 56.6% of Summer Energy shares are held by insiders. Comparatively, 2.0% of Unitil shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Summer Energy and Unitil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summer Energy	0	0	0	0	0.00
Unitil	0	2	0	0	2.00

Unitil has a consensus target price of $55.00, suggesting a potential upside of 8.91%. Given Unitil’s stronger consensus rating and higher possible upside, analysts plainly believe Unitil is more favorable than Summer Energy.

Summary

Unitil beats Summer Energy on 8 of the 9 factors compared between the two stocks.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.

About Unitil

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through two segments, Utility Electric Operations, Utility Gas Operations. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as electricity and natural gas in the greater Fitchburg area of north central Massachusetts. It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides real estate management services. It serves approximately 108,100 electric customers and 87,500 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.