Central Puerto (NYSE:CEPU) versus Drax Group (OTCMKTS:DRXGF) Financial Contrast

Drax Group (OTCMKTS:DRXGF) and Central Puerto (NYSE:CEPU) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Drax Group and Central Puerto”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drax Group	N/A	N/A	N/A	($0.30)	-33.07
Central Puerto	$782.60 million	2.76	$277.08 million	$2.08	6.87

Central Puerto has higher revenue and earnings than Drax Group. Drax Group is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Drax Group and Central Puerto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drax Group	N/A	N/A	N/A
Central Puerto	37.86%	15.93%	11.06%

Institutional & Insider Ownership

74.8% of Drax Group shares are held by institutional investors. Comparatively, 3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Drax Group and Central Puerto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drax Group	0	0	0	0	0.00
Central Puerto	0	1	1	0	2.50

Central Puerto has a consensus target price of $17.50, indicating a potential upside of 22.54%. Given Central Puerto’s stronger consensus rating and higher possible upside, analysts clearly believe Central Puerto is more favorable than Drax Group.

Summary

Central Puerto beats Drax Group on 10 of the 11 factors compared between the two stocks.

About Drax Group

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland. It also owns and operates Daldowie fuel plant that processes sludge, a plant that converts it into dry low-odour fuel pellets. In addition, the company manufactures and sells compressed wood pellets; and supplies renewable electricity. Drax Group plc was incorporated in 2005 and is based in Selby, the United Kingdom.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.