Evergy (NASDAQ:EVRG – Get Free Report) and Algonquin Power & Utilities (NYSE:AQN – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares Evergy and Algonquin Power & Utilities”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evergy | $5.96 billion | 3.15 | $855.60 million | $3.67 | 22.23 |
| Algonquin Power & Utilities | $2.43 billion | 1.95 | $180.80 million | $0.23 | 26.80 |
Dividends
Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.4%. Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.2%. Evergy pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Algonquin Power & Utilities pays out 113.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy has raised its dividend for 20 consecutive years.
Profitability
This table compares Evergy and Algonquin Power & Utilities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evergy | 14.35% | 8.79% | 2.68% |
| Algonquin Power & Utilities | 7.32% | 5.47% | 1.95% |
Analyst Ratings
This is a breakdown of current recommendations for Evergy and Algonquin Power & Utilities, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evergy | 0 | 3 | 6 | 1 | 2.80 |
| Algonquin Power & Utilities | 0 | 7 | 5 | 0 | 2.42 |
Evergy presently has a consensus target price of $87.75, indicating a potential upside of 7.55%. Algonquin Power & Utilities has a consensus target price of $6.63, indicating a potential upside of 7.46%. Given Evergy’s stronger consensus rating and higher probable upside, analysts plainly believe Evergy is more favorable than Algonquin Power & Utilities.
Institutional and Insider Ownership
87.2% of Evergy shares are held by institutional investors. Comparatively, 62.3% of Algonquin Power & Utilities shares are held by institutional investors. 1.4% of Evergy shares are held by company insiders. Comparatively, 0.1% of Algonquin Power & Utilities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Evergy has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Summary
Evergy beats Algonquin Power & Utilities on 15 of the 18 factors compared between the two stocks.
About Evergy
Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.
About Algonquin Power & Utilities
Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.
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