TA vs. CPX, BEP.UN, BLX, SPB, ACO.X, INE, BIPC, BEPC, AQN, and NPI
Should you be buying TransAlta stock or one of its competitors? The main competitors of TransAlta include Capital Power (CPX), Brookfield Renewable Partners (BEP.UN), Boralex (BLX), Superior Plus (SPB), ATCO (ACO.X), Innergex Renewable Energy (INE), Brookfield Infrastructure (BIPC), Brookfield Renewable (BEPC), Algonquin Power & Utilities (AQN), and Northland Power (NPI). These companies are all part of the "utilities" sector.
TransAlta (TSE:TA) and Capital Power (TSE:CPX) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations, community ranking, media sentiment and valuation.
68.2% of TransAlta shares are owned by institutional investors. Comparatively, 19.6% of Capital Power shares are owned by institutional investors. 0.2% of TransAlta shares are owned by company insiders. Comparatively, 0.2% of Capital Power shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
TransAlta has a net margin of 20.71% compared to Capital Power's net margin of 18.29%. TransAlta's return on equity of 43.58% beat Capital Power's return on equity.
TransAlta presently has a consensus price target of C$15.55, indicating a potential upside of 71.26%. Capital Power has a consensus price target of C$46.00, indicating a potential upside of 29.10%. Given TransAlta's stronger consensus rating and higher probable upside, research analysts plainly believe TransAlta is more favorable than Capital Power.
In the previous week, TransAlta had 4 more articles in the media than Capital Power. MarketBeat recorded 10 mentions for TransAlta and 6 mentions for Capital Power. TransAlta's average media sentiment score of 0.17 beat Capital Power's score of -0.28 indicating that TransAlta is being referred to more favorably in the media.
TransAlta has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Capital Power has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Capital Power received 39 more outperform votes than TransAlta when rated by MarketBeat users. Likewise, 53.38% of users gave Capital Power an outperform vote while only 53.21% of users gave TransAlta an outperform vote.
TransAlta pays an annual dividend of C$0.24 per share and has a dividend yield of 2.6%. Capital Power pays an annual dividend of C$2.46 per share and has a dividend yield of 6.9%. TransAlta pays out 10.3% of its earnings in the form of a dividend. Capital Power pays out 40.7% 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.
Capital Power has higher revenue and earnings than TransAlta. TransAlta is trading at a lower price-to-earnings ratio than Capital Power, indicating that it is currently the more affordable of the two stocks.
Summary
TransAlta beats Capital Power on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TA 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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