Head to Head Review: Canadian Utilities (CDUAF) versus Its Rivals

Canadian Utilities (OTCMKTS:CDUAF) is one of 52 public companies in the “Multi – Utilities” industry, but how does it contrast to its competitors? We will compare Canadian Utilities to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Dividends

Canadian Utilities pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Canadian Utilities pays out 40.4% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.7% and pay out 65.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Canadian Utilities and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Utilities	0	6	0	0	2.00
Canadian Utilities Competitors	1032	4018	4331	79	2.37

As a group, “Multi – Utilities” companies have a potential upside of 36.81%. Given Canadian Utilities’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Canadian Utilities has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Canadian Utilities and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canadian Utilities	N/A	N/A	14.28
Canadian Utilities Competitors	$16.41 billion	$269.64 million	27.62

Canadian Utilities’ competitors have higher revenue and earnings than Canadian Utilities. Canadian Utilities is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Canadian Utilities and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Utilities	N/A	N/A	N/A
Canadian Utilities Competitors	8.74%	14.67%	4.07%

Institutional & Insider Ownership

9.7% of Canadian Utilities shares are held by institutional investors. Comparatively, 60.2% of shares of all “Multi – Utilities” companies are held by institutional investors. 10.1% of shares of all “Multi – Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Canadian Utilities competitors beat Canadian Utilities on 12 of the 13 factors compared.

Canadian Utilities Company Profile

Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, and Corporate & Other segments. The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, the Northwest Territories, and the Lloydminster area of Saskatchewan; and integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility located near Fort Saskatchewan, Alberta in Canada. The ATCO EnPower segment provides hydro, solar, wind, and natural gas electricity generation; natural gas storage; industrial water solutions; clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon, the Northwest Territories, Australia, Ontario, Mexico, and Chile. The Corporate & Other segment retails electricity and natural gas; and provides whole-home solutions. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.