Hydro One (H) Competitors

Hydro One (TSE:H) and Restaurant Brands International (TSE:QSR) are both large-cap restaurants, hotels, motels companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, media sentiment, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Which has higher valuation & earnings, H or QSR?

Hydro One has higher revenue and earnings than Restaurant Brands International. Restaurant Brands International 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	3.50	C$1.14B	C$1.90	25.76
Restaurant Brands International	C$4.96B	4.25	C$793.99M	C$4.99	18.61

Which has more risk & volatility, H or QSR?

Hydro One has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Is H or QSR a better dividend stock?

Hydro One pays an annual dividend of C$1.26 per share and has a dividend yield of 2.6%. Restaurant Brands International pays an annual dividend of C$3.14 per share and has a dividend yield of 3.4%. Hydro One pays out 66.4% of its earnings in the form of a dividend. Restaurant Brands International pays out 63.0% 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. Restaurant Brands International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media prefer H or QSR?

In the previous week, Hydro One had 2 more articles in the media than Restaurant Brands International. MarketBeat recorded 4 mentions for Hydro One and 2 mentions for Restaurant Brands International. Restaurant Brands International's average media sentiment score of 0.95 beat Hydro One's score of 0.23 indicating that Restaurant Brands International is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hydro One	0 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Restaurant Brands International	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is H or QSR more profitable?

Restaurant Brands International has a net margin of 16.02% compared to Hydro One's net margin of 13.59%. Restaurant Brands International's return on equity of 41.85% beat Hydro One's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hydro One	13.59%	9.58%	3.57%
Restaurant Brands International	16.02%	41.85%	5.81%

Do analysts rate H or QSR?

Hydro One currently has a consensus price target of C$49.90, suggesting a potential upside of 2.13%. Given Hydro One's higher possible upside, equities analysts clearly believe Hydro One is more favorable than Restaurant Brands International.

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
Restaurant Brands International	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	2 Strong Buy rating(s)	3.00

Do institutionals & insiders have more ownership in H or QSR?

22.1% of Hydro One shares are owned by institutional investors. Comparatively, 88.6% of Restaurant Brands International shares are owned by institutional investors. 47.1% of Hydro One shares are owned by company insiders. Comparatively, 1.2% of Restaurant Brands International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Restaurant Brands International beats Hydro One on 12 of the 19 factors compared between the two stocks.