H vs. FTS, EMA, BIP.UN, BEP.UN, CU, AQN, BEPC, BIPC, CUP.U, and NPI
Should you be buying Hydro One stock or one of its competitors? The main competitors of Hydro One include Fortis (FTS), Emera (EMA), Brookfield Infrastructure Partners (BIP.UN), Brookfield Renewable Partners (BEP.UN), Canadian Utilities (CU), Algonquin Power & Utilities (AQN), Brookfield Renewable (BEPC), Brookfield Infrastructure (BIPC), Caribbean Utilities (CUP.U), and Northland Power (NPI). These companies are all part of the "utilities" sector.
Fortis (TSE:FTS) and Hydro One (TSE:H) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, community ranking, dividends, media sentiment and analyst recommendations.
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.
In the previous week, Fortis had 2 more articles in the media than Hydro One. MarketBeat recorded 14 mentions for Fortis and 12 mentions for Hydro One. Fortis' average media sentiment score of 0.26 beat Hydro One's score of 0.10 indicating that Hydro One is being referred to more favorably in the news media.
58.2% of Fortis shares are held by institutional investors. Comparatively, 22.3% of Hydro One shares are held by institutional investors. 0.0% of Fortis shares are held by insiders. Comparatively, 47.2% of Hydro One shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Fortis received 235 more outperform votes than Hydro One when rated by MarketBeat users. Likewise, 67.86% of users gave Fortis an outperform vote while only 65.11% of users gave Hydro One an outperform vote.
Hydro One has a net margin of 13.83% compared to Hydro One's net margin of 13.66%. Fortis' return on equity of 9.45% beat Hydro One's return on equity.
Fortis presently has a consensus target price of C$57.00, indicating a potential upside of 6.36%. Hydro One has a consensus target price of C$39.56, indicating a potential upside of 4.51%. Given Hydro One's higher possible upside, equities research analysts clearly believe Fortis is more favorable than Hydro One.
Fortis pays an annual dividend of C$2.36 per share and has a dividend yield of 4.4%. Hydro One pays an annual dividend of C$1.19 per share and has a dividend yield of 3.1%. Fortis pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hydro One pays out 65.7% of its earnings in the form of a dividend.
Fortis has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Hydro One has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.
Summary
Hydro One beats Fortis on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding H and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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