AES (NYSE:AES – Get Free Report) and EuroSite Power (OTCMKTS:EUSP – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Profitability
This table compares AES and EuroSite Power’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AES | 6.07% | 32.74% | 4.10% |
EuroSite Power | 5.05% | 3.68% | 3.20% |
Insider and Institutional Ownership
93.1% of AES shares are held by institutional investors. 0.6% of AES shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AES | $12.43 billion | 1.16 | $249.00 million | $0.72 | 28.13 |
EuroSite Power | $7.56 million | 0.52 | $470,000.00 | N/A | N/A |
AES has higher revenue and earnings than EuroSite Power.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for AES and EuroSite Power, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AES | 0 | 2 | 6 | 1 | 2.89 |
EuroSite Power | 0 | 0 | 0 | 0 | N/A |
AES presently has a consensus price target of $21.50, indicating a potential upside of 6.17%. Given AES’s higher probable upside, research analysts clearly believe AES is more favorable than EuroSite Power.
Volatility & Risk
AES has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, EuroSite Power has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.
Summary
AES beats EuroSite Power on 12 of the 12 factors compared between the two stocks.
About AES
The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
About EuroSite Power
EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.
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