Fortis (NYSE:FTS) and Brookfield Renewable (NYSE:BEPC) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Profitability
This table compares Fortis and Brookfield Renewable's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Fortis | 13.88% | 6.00% | 2.07% |
Brookfield Renewable | N/A | N/A | N/A |
Institutional & Insider Ownership
47.8% of Fortis shares are owned by institutional investors. Comparatively, 51.2% of Brookfield Renewable shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Fortis and Brookfield Renewable, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Fortis | 0 | 3 | 5 | 0 | 2.63 |
Brookfield Renewable | 0 | 2 | 0 | 0 | 2.00 |
Fortis currently has a consensus target price of $59.5714, suggesting a potential upside of 33.06%. Brookfield Renewable has a consensus target price of $48.50, suggesting a potential upside of 13.19%. Given Fortis' stronger consensus rating and higher possible upside, analysts plainly believe Fortis is more favorable than Brookfield Renewable.
Earnings and Valuation
This table compares Fortis and Brookfield Renewable's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Fortis | $6.62 billion | 3.17 | $1.30 billion | $1.92 | 23.26 |
Brookfield Renewable | N/A | N/A | N/A | N/A | N/A |
Fortis has higher revenue and earnings than Brookfield Renewable.
Dividends
Fortis pays an annual dividend of $1.54 per share and has a dividend yield of 3.4%. Brookfield Renewable pays an annual dividend of $1.22 per share and has a dividend yield of 2.9%. Fortis pays out 80.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fortis has raised its dividend for 1 consecutive years. Fortis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Fortis beats Brookfield Renewable on 9 of the 11 factors compared between the two stocks.