CenterPoint Energy (NYSE:CNP – Get Free Report) and Commerce Energy Group (OTCMKTS:CMNR – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Profitability
This table compares CenterPoint Energy and Commerce Energy Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CenterPoint Energy | 11.25% | 9.73% | 2.41% |
Commerce Energy Group | N/A | N/A | N/A |
Insider & Institutional Ownership
91.8% of CenterPoint Energy shares are held by institutional investors. 0.2% of CenterPoint Energy shares are held by insiders. Comparatively, 0.9% of Commerce Energy Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CenterPoint Energy | $8.70 billion | 2.44 | $917.00 million | $1.51 | 21.56 |
Commerce Energy Group | N/A | N/A | N/A | N/A | N/A |
CenterPoint Energy has higher revenue and earnings than Commerce Energy Group.
Analyst Recommendations
This is a breakdown of current ratings for CenterPoint Energy and Commerce Energy Group, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CenterPoint Energy | 1 | 8 | 3 | 0 | 2.17 |
Commerce Energy Group | 0 | 0 | 0 | 0 | 0.00 |
CenterPoint Energy presently has a consensus target price of $31.46, indicating a potential downside of 3.38%. Given Commerce Energy Group’s higher probable upside, analysts clearly believe Commerce Energy Group is more favorable than CenterPoint Energy.
Summary
CenterPoint Energy beats Commerce Energy Group on 7 of the 9 factors compared between the two stocks.
About CenterPoint Energy
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides maintenance and repair services of home appliances to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. It serves approximately 2,534,730 metered customers; owned 348 substations with transformer capacity of 79,719 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.
About Commerce Energy Group
Commerce Energy Group Inc. through its subsidiaries provides electric power and natural gas to residential, commercial, industrial and institutional customers in California, Pennsylvania, Michigan, Maryland, New Jersey, Texas, Florida, Georgia, Nevada, and Ohio. The company was founded in 1997 and is based in Costa Mesa, California.
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