Fortis (FTS) Competitors

Hydro One (TSE:H) and Fortis (TSE:FTS) are both large-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, media sentiment, profitability and risk.

Does the media favor H or FTS?

In the previous week, Fortis had 26 more articles in the media than Hydro One. MarketBeat recorded 27 mentions for Fortis and 1 mentions for Hydro One. Fortis' average media sentiment score of 0.71 beat Hydro One's score of 0.58 indicating that Fortis is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hydro One	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Fortis	5 Very Positive mention(s)	3 Positive mention(s)	9 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is H or FTS a better dividend stock?

Hydro One pays an annual dividend of C$1.26 per share and has a dividend yield of 2.5%. Fortis pays an annual dividend of C$2.46 per share and has a dividend yield of 3.5%. Hydro One pays out 66.4% of its earnings in the form of a dividend. Fortis pays out 73.0% 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.

Is H or FTS more profitable?

Fortis has a net margin of 14.53% compared to Hydro One's net margin of 13.59%. Hydro One's return on equity of 9.58% beat Fortis' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hydro One	13.59%	9.58%	3.57%
Fortis	14.53%	7.48%	3.09%

Do analysts recommend H or FTS?

Hydro One presently has a consensus target price of C$50.10, indicating a potential downside of 1.61%. Fortis has a consensus target price of C$68.82, indicating a potential downside of 1.81%. Given Hydro One's higher probable upside, equities research analysts clearly believe Hydro One is more favorable than Fortis.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	0 Sell rating(s)	8 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.11
Fortis	2 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.20

Do institutionals & insiders believe in H or FTS?

22.1% of Hydro One shares are owned by institutional investors. Comparatively, 57.4% of Fortis shares are owned by institutional investors. 47.1% of Hydro One shares are owned by company insiders. Comparatively, 0.0% of Fortis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Which has preferable valuation & earnings, H or FTS?

Fortis has higher revenue and earnings than Hydro One. Fortis is trading at a lower price-to-earnings ratio than Hydro One, 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
Hydro One	C$8.37B	3.65	C$1.14B	C$1.90	26.85
Fortis	C$11.41B	3.04	C$1.66B	C$3.37	20.80

Which has more risk & volatility, H or FTS?

Hydro One has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Fortis has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Summary

Fortis beats Hydro One on 11 of the 19 factors compared between the two stocks.