Algonquin Power & Utilities (NYSE:AQN) and Otter Tail (NASDAQ:OTTR) are both mid-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
This is a summary of recent recommendations and price targets for Algonquin Power & Utilities and Otter Tail, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Algonquin Power & Utilities||0||4||2||1||2.57|
Algonquin Power & Utilities currently has a consensus target price of $12.14, suggesting a potential upside of 7.55%. Otter Tail has a consensus target price of $51.00, suggesting a potential upside of 1.39%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Algonquin Power & Utilities is more favorable than Otter Tail.
Valuation & Earnings
This table compares Algonquin Power & Utilities and Otter Tail’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Algonquin Power & Utilities||$1.65 billion||3.36||$184.99 million||$0.66||17.11|
|Otter Tail||$916.45 million||2.18||$82.35 million||$2.06||24.42|
Algonquin Power & Utilities has higher revenue and earnings than Otter Tail. Algonquin Power & Utilities is trading at a lower price-to-earnings ratio than Otter Tail, indicating that it is currently the more affordable of the two stocks.
This table compares Algonquin Power & Utilities and Otter Tail’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Algonquin Power & Utilities||11.23%||9.35%||3.44%|
Volatility and Risk
Algonquin Power & Utilities has a beta of 0.74, meaning that its stock…