Analyzing Premier (OTCMKTS:PRHL) and NiSource (NYSE:NI)

Premier (OTCMKTS:PRHL) and NiSource (NYSE:NI) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

91.6% of NiSource shares are held by institutional investors. 2.2% of Premier shares are held by company insiders. Comparatively, 0.4% of NiSource shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Premier and NiSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premier	N/A	N/A	N/A
NiSource	14.15%	8.31%	2.70%

Valuation and Earnings

This table compares Premier and NiSource”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premier	N/A	N/A	N/A	N/A	N/A
NiSource	$6.64 billion	3.47	$929.50 million	$2.01	23.92

NiSource has higher revenue and earnings than Premier.

Analyst Recommendations

This is a summary of current recommendations and price targets for Premier and NiSource, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier	0	0	0	0	0.00
NiSource	0	3	7	1	2.82

NiSource has a consensus price target of $50.33, indicating a potential upside of 4.69%. Given NiSource’s stronger consensus rating and higher probable upside, analysts clearly believe NiSource is more favorable than Premier.

Summary

NiSource beats Premier on 9 of the 10 factors compared between the two stocks.

About Premier

Premier Holding Corp. is a holding company, which engages in the provision of energy solutions. The firm operates through its subsidiary companies, Energy Efficiency Experts, Inc. (E3) and The Power Company USA, LLC (TPC). It enables customers to reduce energy consumption, lower operating and maintenance costs, and realize environmental benefits. The company was founded on October 18, 1971 and is headquartered in Tustin, CA.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.