United Utilities Group (OTCMKTS:UUGRY) versus Eversource Energy (NYSE:ES) Financial Survey

United Utilities Group (OTCMKTS:UUGRY) and Eversource Energy (NYSE:ES) are both large-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

United Utilities Group pays an annual dividend of $0.90 per share and has a dividend yield of 2.5%. Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.7%. Eversource Energy pays out 68.9% of its earnings in the form of a dividend. Eversource Energy has increased its dividend for 2 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

80.0% of Eversource Energy shares are owned by institutional investors. 0.2% of Eversource Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

United Utilities Group has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Eversource Energy has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for United Utilities Group and Eversource Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Utilities Group	0	4	2	1	2.57
Eversource Energy	3	5	3	1	2.17

Eversource Energy has a consensus target price of $71.80, indicating a potential upside of 7.18%. Given Eversource Energy’s higher probable upside, analysts clearly believe Eversource Energy is more favorable than United Utilities Group.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Utilities Group	$2.70 billion	4.51	$337.73 million	N/A	N/A
Eversource Energy	$13.55 billion	1.86	$1.69 billion	$4.57	14.66

Eversource Energy has higher revenue and earnings than United Utilities Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Utilities Group	N/A	N/A	N/A
Eversource Energy	12.49%	11.18%	2.87%

Summary

Eversource Energy beats United Utilities Group on 11 of the 15 factors compared between the two stocks.

About United Utilities Group

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

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.