Summer Energy (OTCMKTS:SUME) and Algonquin Power & Utilities (NYSE:AQN) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Insider and Institutional Ownership
0.2% of Summer Energy shares are owned by institutional investors. Comparatively, 42.7% of Algonquin Power & Utilities shares are owned by institutional investors. 63.2% of Summer Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summer Energy has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Algonquin Power & Utilities pays an annual dividend of $0.51 per share and has a dividend yield of 4.8%. Summer Energy does not pay a dividend. Algonquin Power & Utilities pays out 87.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Summer Energy and Algonquin Power & Utilities’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Summer Energy||$117.68 million||0.46||$1.26 million||N/A||N/A|
|Algonquin Power & Utilities||$1.56 billion||3.32||$148.95 million||$0.58||18.24|
Algonquin Power & Utilities has higher revenue and earnings than Summer Energy.
This table compares Summer Energy and Algonquin Power & Utilities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Algonquin Power & Utilities||11.48%||9.59%||3.53%|
This is a breakdown of recent ratings and price targets for Summer Energy and Algonquin Power & Utilities, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Algonquin Power & Utilities||0||2||2||1||2.80|
Algonquin Power & Utilities has a consensus target price of $11.90, indicating a potential upside of 12.48%. Given Algonquin Power & Utilities’ higher probable upside, analysts plainly believe Algonquin Power & Utilities is more favorable than Summer Energy.
Algonquin Power & Utilities beats Summer Energy on 11 of the 14 factors compared between the two stocks.
About Summer Energy
Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric service provider in Texas, Massachusetts, Rhode Island, and New Hampshire. The company procures wholesale energy and resells to commercial and residential customers. Summer Energy Holdings, Inc. was founded in 2011 and is headquartered in Houston, Texas.
About Algonquin Power & Utilities
Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada and the United States. The company generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. It owns or has interests in hydroelectric facilities with a generating capacity of approximately 120 megawatts (MW); wind powered generating facilities with a generating capacity of 1,050 MW; solar energy facilities with a generating capacity of 40 MW; and thermal energy facilities with a generating capacity of 335 MW. The company also owns and operates a portfolio of regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 265,000 electric connections; 337,000 natural gas connections; and 160,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, Arizona, and Texas. The company was incorporated in 1988 and is headquartered in Oakville, Canada.
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