CPX vs. TA, BEP.UN, ACO.X, NPI, AQN, BIPC, CU, BLX, SPB, and BEPC
Should you be buying Capital Power stock or one of its competitors? The main competitors of Capital Power include TransAlta (TA), Brookfield Renewable Partners (BEP.UN), ATCO (ACO.X), Northland Power (NPI), Algonquin Power & Utilities (AQN), Brookfield Infrastructure (BIPC), Canadian Utilities (CU), Boralex (BLX), Superior Plus (SPB), and Brookfield Renewable (BEPC). 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 contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, media sentiment, profitability, risk, institutional ownership, community ranking and valuation.
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 6.4%. TransAlta pays out 12.3% of its earnings in the form of a dividend. Capital Power pays out 47.0% 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.
67.3% of TransAlta shares are held by institutional investors. Comparatively, 18.7% 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
TransAlta currently has a consensus target price of C$15.22, suggesting a potential upside of 56.29%. Capital Power has a consensus target price of C$44.45, suggesting a potential upside of 15.11%. Given Capital Power's stronger consensus rating and higher probable upside, research analysts clearly believe TransAlta is more favorable than Capital Power.
TransAlta has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Capital Power has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
In the previous week, TransAlta had 2 more articles in the media than Capital Power. MarketBeat recorded 3 mentions for TransAlta and 1 mentions for Capital Power. Capital Power's average media sentiment score of 0.23 beat TransAlta's score of 0.00 indicating that TransAlta is being referred to more favorably in the media.
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 has a net margin of 19.39% compared to TransAlta's net margin of 16.78%. Capital Power's return on equity of 33.61% beat TransAlta's return on equity.
Summary
TransAlta beats Capital Power on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CPX 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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