Head to Head Contrast: E.On (OTCMKTS:EONGY) versus Brookfield Infrastructure (NYSE:BIPC)

E.On (OTCMKTS:EONGY) and Brookfield Infrastructure (NYSE:BIPC) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Dividends

E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.4%. Brookfield Infrastructure pays an annual dividend of $1.82 per share and has a dividend yield of 4.9%. E.On pays out 32.7% of its earnings in the form of a dividend. Brookfield Infrastructure has increased its dividend for 5 consecutive years. Brookfield Infrastructure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares E.On and Brookfield Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E.On	4.49%	11.54%	2.72%
Brookfield Infrastructure	N/A	N/A	N/A

Insider & Institutional Ownership

70.4% of Brookfield Infrastructure shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares E.On and Brookfield Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.On	$89.03 billion	0.59	$1.96 billion	$1.50	13.49
Brookfield Infrastructure	$3.70 billion	1.23	N/A	N/A	N/A

E.On has higher revenue and earnings than Brookfield Infrastructure.

Risk & Volatility

E.On has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Brookfield Infrastructure has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for E.On and Brookfield Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.On	0	5	2	1	2.50
Brookfield Infrastructure	2	0	0	0	1.00

Brookfield Infrastructure has a consensus target price of $50.00, indicating a potential upside of 35.14%. Given Brookfield Infrastructure’s higher possible upside, analysts clearly believe Brookfield Infrastructure is more favorable than E.On.

Summary

Brookfield Infrastructure beats E.On on 8 of the 15 factors compared between the two stocks.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.

About Brookfield Infrastructure

Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.