Comparing Otter Tail (OTTR) & Algonquin Power & Utilities (AQN)

Algonquin Power & Utilities (NYSE:AQN) and Otter Tail (NASDAQ:OTTR) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Dividends

Algonquin Power & Utilities pays an annual dividend of $0.51 per share and has a dividend yield of 4.5%. Otter Tail pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. Algonquin Power & Utilities pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Otter Tail pays out 68.0% of its earnings in the form of a dividend. Otter Tail has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

45.4% of Algonquin Power & Utilities shares are held by institutional investors. Comparatively, 43.6% of Otter Tail shares are held by institutional investors. 1.7% of Otter Tail shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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%

Analyst Recommendations

This is a summary of current ratings and target prices for Algonquin Power & Utilities and Otter Tail, as reported by MarketBeat.com.

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 7.27%. Otter Tail has a consensus target price of…

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