Financial Review: Algonquin Power & Utilities (AQN) & Its Peers

Algonquin Power & Utilities (NYSE: AQN) is one of 69 public companies in the “Electric services” industry, but how does it weigh in compared to its rivals? We will compare Algonquin Power & Utilities to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, valuation, profitability and earnings.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Algonquin Power & Utilities and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Algonquin Power & Utilities 0 1 0 0 2.00
Algonquin Power & Utilities Competitors 426 2330 2018 57 2.35

As a group, “Electric services” companies have a potential upside of 9.32%. Given Algonquin Power & Utilities’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Algonquin Power & Utilities has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Algonquin Power & Utilities and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Algonquin Power & Utilities $1.56 billion $148.95 million 17.09
Algonquin Power & Utilities Competitors $8.48 billion $467.20 million 10.72

Algonquin Power & Utilities’ rivals have higher revenue and earnings than Algonquin Power & Utilities. Algonquin Power & Utilities is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Algonquin Power & Utilities and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Algonquin Power & Utilities 9.82% 8.36% 2.78%
Algonquin Power & Utilities Competitors -23.11% 3.58% -0.65%

Dividends

Algonquin Power & Utilities pays an annual dividend of $0.47 per share and has a dividend yield of 4.7%. Algonquin Power & Utilities pays out 81.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 70.7% of their earnings in the form of a dividend.

Risk & Volatility

Algonquin Power & Utilities has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities’ rivals have a beta of 0.03, suggesting that their average stock price is 97% less volatile than the S&P 500.

Insider & Institutional Ownership

38.6% of Algonquin Power & Utilities shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 3.9% of shares of all “Electric services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Algonquin Power & Utilities rivals beat Algonquin Power & Utilities on 9 of the 15 factors compared.

Algonquin Power & Utilities Company Profile

Algonquin Power & Utilities Corp., through its subsidiaries, engages in the generation, transmission, and distribution of utility assets in North America. 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 combined generating capacity of approximately 120 megawatts (MW); wind powered generating facilities with a combined generating capacity of 1,050 MW; and solar energy facilities with a combined generating capacity of 40 MW, as well as interests in thermal energy facilities with a combined generating capacity of 335 MW. The company also owns and operates a portfolio of regulated electricity, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 262,500 electric connections; 337,000 natural gas connections; and 182,500 regulated water distribution and wastewater collection connections in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, Arizona, Arkansas, Montana, and Texas. The company was founded in 1996 and is headquartered in Oakville, Canada.

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