Black Hills (NYSE:BKH) and Sky Solar (NASDAQ:SKYS) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Black Hills pays an annual dividend of $1.90 per share and has a dividend yield of 3.2%. Sky Solar does not pay a dividend. Black Hills pays out 56.5% of its earnings in the form of a dividend. Black Hills has increased its dividend for 48 consecutive years.
Valuation & Earnings
This table compares Black Hills and Sky Solar’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Black Hills has higher revenue and earnings than Sky Solar. Sky Solar is trading at a lower price-to-earnings ratio than Black Hills, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Black Hills has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Sky Solar has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Black Hills and Sky Solar, as reported by MarketBeat.
||Strong Buy Ratings
Black Hills presently has a consensus target price of $60.43, suggesting a potential upside of 0.51%. Given Black Hills’ higher probable upside, analysts plainly believe Black Hills is more favorable than Sky Solar.
This table compares Black Hills and Sky Solar’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional & Insider Ownership
99.7% of Black Hills shares are held by institutional investors. Comparatively, 0.2% of Sky Solar shares are held by institutional investors. 1.1% of Black Hills shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Black Hills beats Sky Solar on 13 of the 16 factors compared between the two stocks.
Black Hills Company Profile
Black Hills Corporation, through its subsidiaries, operates as a vertically-integrated utility company in the United States. The company's Electric Utilities segment generates, transmits, and distributes electricity to approximately 210,000 electric customers in South Dakota, Wyoming, Colorado, and Montana. This segment owns 941 megawatts of generation capacity and 8,839 miles of electric transmission and distribution lines. Its Gas Utilities segment distributes natural gas to approximately 1,042,000 natural gas utility customers in Arkansas, Colorado, Iowa, Nebraska, Kansas, and Wyoming. This segment owns 4,656 miles of intrastate gas transmission pipelines and 40,455 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The company's Power Generation segment produces electric power and sells the electric capacity and energy primarily to its utilities under long-term contracts. Its Mining segment produces coal at its coal mine located near Gillette, Wyoming and sells the coal to electric generation facilities. The company also provides appliance repair services to approximately 63,000 residential customers; and constructs and maintains gas infrastructure facilities and electrical systems for gas transportation and electric utilities customers. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.
Sky Solar Company Profile
Sky Solar Holdings, Ltd., an investment holding company, operates as an independent power producer worldwide. The company develops, owns, and operates solar parks primarily in the downstream solar market. It also sells solar energy systems, including pipeline; and engineering, construction, and procurement services, as well as engages in building and transferring solar parks. As of December 31, 2017, the company developed 318 solar parks with an aggregate capacity of 377.2 megawatts (MW) in Japan, Bulgaria, the Czech Republic, Spain, Canada, the United States, and Uruguay; and owned and operated 196.7 MW of solar parks, including 96.3 MW in Japan, 5.6 MW in the Czech Republic, 0.2 MW in Canada, 0.9 MW in Spain, 22.1 MW in the United States, and 71.6 MW in Uruguay. It also had approximately 400 MW of solar projects in various stages of development in countries, such as Chile, Japan, Canada, and the United States comprising 6.6 MW under construction, 180.1 MW of shovel-ready projects, and approximately 250 MW of solar parks in pipeline. The company has strategic partnership agreement with Hudson Clean Energy Partners for investing in renewable power and clean energy. Sky Solar Holdings, Ltd. was founded in 2009 and is headquartered in Admiralty, Hong Kong.
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