TA vs. CPX, BEP.UN, BLX, SPB, ACO.X, INE, NPI, BIPC, BEPC, and AQN
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), Northland Power (NPI), Brookfield Infrastructure (BIPC), Brookfield Renewable (BEPC), and Algonquin Power & Utilities (AQN). 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 business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, community ranking, institutional ownership, media sentiment and risk.
TransAlta pays an annual dividend of C$0.24 per share and has a dividend yield of 2.5%. Capital Power pays an annual dividend of C$2.46 per share and has a dividend yield of 6.8%. 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.
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.
68.2% of TransAlta shares are held by institutional investors. Comparatively, 19.6% of Capital Power shares are held by institutional investors. 0.2% of TransAlta shares are held by company insiders. Comparatively, 0.2% of Capital Power 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.
Capital Power received 41 more outperform votes than TransAlta when rated by MarketBeat users. However, 53.21% of users gave TransAlta an outperform vote while only 53.06% of users gave Capital Power an outperform vote.
TransAlta presently has a consensus target price of C$15.55, suggesting a potential upside of 60.97%. Capital Power has a consensus target price of C$44.45, suggesting a potential upside of 23.31%. Given TransAlta's stronger consensus rating and higher possible upside, equities analysts plainly believe TransAlta is more favorable than Capital Power.
TransAlta has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Capital Power has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
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.
In the previous week, Capital Power had 25 more articles in the media than TransAlta. MarketBeat recorded 36 mentions for Capital Power and 11 mentions for TransAlta. TransAlta's average media sentiment score of 0.30 beat Capital Power's score of 0.01 indicating that TransAlta is being referred to more favorably in the media.
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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