Edison International (NYSE: EIX) and Atlantic Power (NYSE:AT) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Earnings & Valuation
This table compares Edison International and Atlantic Power’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Edison International||$12.32 billion||1.69||$689.00 million||$3.14||20.32|
|Atlantic Power||$431.00 million||0.57||-$93.00 million||($0.61)||-3.44|
Edison International pays an annual dividend of $2.42 per share and has a dividend yield of 3.8%. Atlantic Power does not pay a dividend. Edison International pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Edison International has increased its dividend for 13 consecutive years.
This is a summary of recent ratings and recommmendations for Edison International and Atlantic Power, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Edison International presently has a consensus target price of $77.00, suggesting a potential upside of 20.67%. Atlantic Power has a consensus target price of $2.50, suggesting a potential upside of 19.05%. Given Edison International’s stronger consensus rating and higher probable upside, analysts clearly believe Edison International is more favorable than Atlantic Power.
Volatility and Risk
Edison International has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Atlantic Power has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Insider & Institutional Ownership
82.3% of Edison International shares are held by institutional investors. Comparatively, 50.4% of Atlantic Power shares are held by institutional investors. 0.4% of Edison International shares are held by company insiders. Comparatively, 1.6% of Atlantic Power 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.
This table compares Edison International and Atlantic Power’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Edison International beats Atlantic Power on 13 of the 17 factors compared between the two stocks.
About Edison International
Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc. (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers. SCE’s projects include West of Devers, Mesa Substation, Alberhill System, Riverside Transmission Reliability, Eldorado-Lugo-Mohave Upgrade, Tehachapi and Coolwater-Lugo. As of December 31, 2016, the West of Devers Project consisted of upgrading and reconfiguring approximately 48 miles of existing 220 kilovolt (kV) transmission lines between the Devers, El Casco, Vista and San Bernardino substations.
About Atlantic Power
Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation assets in the United States and Canada. The Company’s power generation projects sell electricity to utilities and other commercial customers. Atlantic Power’s segments include East U.S., West U.S. and Canada. The Company’s East U.S. segment comprises natural gas, biomass, coal and hydro projects. The Company’s projects under the West U.S. segment include Naval Station, Naval Training Center, North Island, Oxnard, Manchief and Frederickson, which are focused on natural gas, and Koma Kulshan, which is focused on hydro. Under the Canada segment, the Company’s projects located in British Columbia include Mamquam, Mamquam and Williams Lake. Its Calstock and Tunis projects are located in Ontario. The Company’s portfolio consisted of interests in 19 operational power generation projects across nine states in the United States and two provinces in Canada, as of December 31, 2016.
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