Algonquin Power & Utilities (AQN) and Otter Tail (OTTR) Financial Analysis

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Algonquin Power & Utilities and Otter Tail, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Algonquin Power & Utilities04212.57
Otter Tail10102.00

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 RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Algonquin Power & Utilities$1.65 billion3.36$184.99 million$0.6617.11
Otter Tail$916.45 million2.18$82.35 million$2.0624.42

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.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Algonquin Power & Utilities11.23%9.35%3.44%
Otter Tail8.99%11.45%4.07%

Volatility and Risk

Algonquin Power & Utilities has a beta of 0.74, meaning that its stock…

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