EMA vs. H, FTS, BIP.UN, BEP.UN, CU, AQN, BEPC, BIPC, NPI, and CPX
Should you be buying Emera stock or one of its competitors? The main competitors of Emera include Hydro One (H), Fortis (FTS), Brookfield Infrastructure Partners (BIP.UN), Brookfield Renewable Partners (BEP.UN), Canadian Utilities (CU), Algonquin Power & Utilities (AQN), Brookfield Renewable (BEPC), Brookfield Infrastructure (BIPC), Northland Power (NPI), and Capital Power (CPX). These companies are all part of the "utilities" sector.
Hydro One (TSE:H) and Emera (TSE:EMA) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, community ranking, analyst recommendations, risk, institutional ownership, earnings, media sentiment and valuation.
Hydro One currently has a consensus target price of C$39.56, suggesting a potential upside of 3.52%. Emera has a consensus target price of C$54.50, suggesting a potential upside of 17.38%. Given Hydro One's stronger consensus rating and higher possible upside, analysts plainly believe Emera is more favorable than Hydro One.
22.3% of Hydro One shares are held by institutional investors. Comparatively, 30.7% of Emera shares are held by institutional investors. 47.2% of Hydro One shares are held by insiders. Comparatively, 0.1% of Emera shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Hydro One has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Emera has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.
Emera received 94 more outperform votes than Hydro One when rated by MarketBeat users. However, 65.11% of users gave Hydro One an outperform vote while only 58.63% of users gave Emera an outperform vote.
In the previous week, Emera had 1 more articles in the media than Hydro One. MarketBeat recorded 14 mentions for Emera and 13 mentions for Hydro One. Emera's average media sentiment score of 0.32 beat Hydro One's score of -0.68 indicating that Hydro One is being referred to more favorably in the media.
Hydro One has a net margin of 13.83% compared to Hydro One's net margin of 13.80%. Emera's return on equity of 9.45% beat Hydro One's return on equity.
Hydro One pays an annual dividend of C$1.19 per share and has a dividend yield of 3.1%. Emera pays an annual dividend of C$2.87 per share and has a dividend yield of 6.2%. Hydro One pays out 65.7% of its earnings in the form of a dividend. Emera pays out 80.4% 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 has higher revenue and earnings than Emera. Emera is trading at a lower price-to-earnings ratio than Hydro One, indicating that it is currently the more affordable of the two stocks.
Summary
Hydro One beats Emera on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding EMA 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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