Critical Review: Algonquin Power & Utilities (NYSE:AQN) and Elster Group (OTCMKTS:ELTTY)

Elster Group (OTCMKTS:ELTTY) and Algonquin Power & Utilities (NYSE:AQN) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

62.3% of Algonquin Power & Utilities shares are held by institutional investors. 0.1% of Algonquin Power & Utilities shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Elster Group and Algonquin Power & Utilities, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elster Group	0	0	0	0	0.00
Algonquin Power & Utilities	0	6	6	0	2.50

Algonquin Power & Utilities has a consensus price target of $6.81, suggesting a potential upside of 16.23%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, analysts clearly believe Algonquin Power & Utilities is more favorable than Elster Group.

Profitability

This table compares Elster Group and Algonquin Power & Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elster Group	N/A	N/A	N/A
Algonquin Power & Utilities	6.62%	5.21%	1.83%

Valuation & Earnings

This table compares Elster Group and Algonquin Power & Utilities”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elster Group	N/A	N/A	N/A	N/A	N/A
Algonquin Power & Utilities	$2.43 billion	1.85	$180.80 million	$0.22	26.61

Algonquin Power & Utilities has higher revenue and earnings than Elster Group.

Summary

Algonquin Power & Utilities beats Elster Group on 9 of the 9 factors compared between the two stocks.

About Elster Group

Elster Group SE (Elster) is a provider of gas, electricity and water meters and related communications, networking and software solutions with operations in more than 30 countries. Its portfolio of products and solutions are used to measure gas, electricity and water consumption. The Company operates in three segments: Gas, Electricity and Water. The Gas business provides products and solutions for gas metering, gas utilization and distribution. The Electricity business provides electronic single-phase and polyphase meters for residential and commercial and industrial applications. The Water segment provides brass and polymer-based mechanical and electronic meters for residential and commercial and industrial applications, including single-jet and multi-jet flow meters or volumetric meters.

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.