Contrasting CLP (OTCMKTS:CLPHY) and Pacific Gas & Electric (NYSE:PCG)

CLP (OTCMKTS:CLPHY) and Pacific Gas & Electric (NYSE:PCG) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Risk and Volatility

CLP has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Pacific Gas & Electric has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Dividends

CLP pays an annual dividend of $0.29 per share and has a dividend yield of 3.1%. Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Pacific Gas & Electric pays out 16.8% of its earnings in the form of a dividend. Pacific Gas & Electric has raised its dividend for 1 consecutive years.

Profitability

This table compares CLP and Pacific Gas & Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLP	N/A	N/A	N/A
Pacific Gas & Electric	10.93%	11.10%	2.42%

Analyst Ratings

This is a summary of recent ratings and target prices for CLP and Pacific Gas & Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLP	0	0	0	0	0.00
Pacific Gas & Electric	1	6	7	0	2.43

Pacific Gas & Electric has a consensus price target of $20.55, indicating a potential upside of 33.46%. Given Pacific Gas & Electric’s stronger consensus rating and higher possible upside, analysts clearly believe Pacific Gas & Electric is more favorable than CLP.

Earnings and Valuation

This table compares CLP and Pacific Gas & Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLP	$11.66 billion	2.06	$1.52 billion	N/A	N/A
Pacific Gas & Electric	$24.42 billion	1.39	$2.51 billion	$1.19	12.94

Pacific Gas & Electric has higher revenue and earnings than CLP.

Institutional & Insider Ownership

78.6% of Pacific Gas & Electric shares are owned by institutional investors. 0.1% of Pacific Gas & Electric shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Pacific Gas & Electric beats CLP on 11 of the 15 factors compared between the two stocks.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.