Head to Head Survey: SSE (SSEZY) versus Algonquin Power & Utilities (AQN)

SSE (OTCMKTS: SSEZY) and Algonquin Power & Utilities (NYSE:AQN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Volatility & Risk

SSE has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Earnings & Valuation

This table compares SSE 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
SSE $35.96 billion 0.52 $2.09 billion $1.56 11.85
Algonquin Power & Utilities $1.56 billion 2.75 $148.95 million $0.58 17.09

SSE has higher revenue and earnings than Algonquin Power & Utilities. SSE is trading at a lower price-to-earnings ratio than Algonquin Power & Utilities, indicating that it is currently the more affordable of the two stocks.

Dividends

SSE pays an annual dividend of $1.22 per share and has a dividend yield of 6.6%. Algonquin Power & Utilities pays an annual dividend of $0.47 per share and has a dividend yield of 4.7%. SSE pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. SSE is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.3% of SSE shares are held by institutional investors. Comparatively, 38.6% of Algonquin Power & Utilities shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SSE and Algonquin Power & Utilities, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SSE 0 0 2 0 3.00
Algonquin Power & Utilities 0 1 0 0 2.00

Profitability

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

Net Margins Return on Equity Return on Assets
SSE N/A N/A N/A
Algonquin Power & Utilities 9.82% 8.36% 2.78%

Summary

SSE beats Algonquin Power & Utilities on 8 of the 13 factors compared between the two stocks.

About SSE

SSE plc is engaged in producing, distributing and supplying electricity and gas, as well as other energy-related services to homes and businesses in Great Britain and Ireland. The Company’s segments include Networks, which consists of electricity distribution, electricity transmission and gas distribution; Retail, which consists of energy supply, enterprise and energy-related services, and Wholesale, which consists of energy portfolio management and electricity generation, gas storage and gas production. The Networks segment is engaged in the distribution of electricity to customer premises in the North of Scotland and the South of England. Its Retail segment supplies electricity and gas to residential and business customers in the United Kingdom and Ireland. The Wholesale segment is engaged in the generation of power from renewable and thermal plant in the United Kingdom, Ireland and Europe, and the procurement and optimization of power and gas and other commodity requirements.

About Algonquin Power & Utilities

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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