Algonquin Power & Utilities (AQN) Competitors

TransAlta (TSE:TA) and Algonquin Power & Utilities (TSE:AQN) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, media sentiment, valuation, analyst recommendations and profitability.

Which has more risk & volatility, TA or AQN?

TransAlta has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Do analysts rate TA or AQN?

TransAlta currently has a consensus target price of C$19.22, indicating a potential upside of 14.76%. Algonquin Power & Utilities has a consensus target price of C$6.38, indicating a potential downside of 20.71%. Given TransAlta's stronger consensus rating and higher possible upside, analysts clearly believe TransAlta is more favorable than Algonquin Power & Utilities.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransAlta	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	3.11
Algonquin Power & Utilities	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Do institutionals & insiders hold more shares of TA or AQN?

70.8% of TransAlta shares are owned by institutional investors. Comparatively, 62.0% of Algonquin Power & Utilities shares are owned by institutional investors. 0.2% of TransAlta shares are owned by company insiders. Comparatively, 0.1% of Algonquin Power & Utilities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Does the media favor TA or AQN?

In the previous week, TransAlta and TransAlta both had 1 articles in the media. TransAlta's average media sentiment score of 0.84 beat Algonquin Power & Utilities' score of -0.36 indicating that TransAlta is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
TransAlta	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Algonquin Power & Utilities	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is TA or AQN more profitable?

TransAlta has a net margin of 7.49% compared to Algonquin Power & Utilities' net margin of -39.22%. TransAlta's return on equity of 12.03% beat Algonquin Power & Utilities' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
TransAlta	7.49%	12.03%	7.07%
Algonquin Power & Utilities	-39.22%	-19.30%	1.59%

Is TA or AQN a better dividend stock?

TransAlta pays an annual dividend of C$0.24 per share and has a dividend yield of 1.4%. Algonquin Power & Utilities pays an annual dividend of C$0.36 per share and has a dividend yield of 4.5%. TransAlta pays out 34.2% of its earnings in the form of a dividend. Algonquin Power & Utilities pays out -18.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Algonquin Power & Utilities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has higher earnings and valuation, TA or AQN?

TransAlta has higher revenue and earnings than Algonquin Power & Utilities. Algonquin Power & Utilities is trading at a lower price-to-earnings ratio than TransAlta, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransAlta	C$2.83B	1.78	C$212.05M	C$0.70	23.87
Algonquin Power & Utilities	C$1.95B	2.24	-C$763.91M	-C$1.99	-4.03

Summary

TransAlta beats Algonquin Power & Utilities on 15 of the 18 factors compared between the two stocks.