H vs. FTS, EMA, BIP.UN, BEP.UN, BEPC, CU, BIPC, AQN, CUP.U, and NPI
Should you be buying Hydro One stock or one of its competitors? The main competitors of Hydro One include Fortis (FTS), Emera (EMA), Brookfield Infrastructure Partners (BIP.UN), Brookfield Renewable Partners (BEP.UN), Brookfield Renewable (BEPC), Canadian Utilities (CU), Brookfield Infrastructure (BIPC), Algonquin Power & Utilities (AQN), Caribbean Utilities (CUP.U), and Northland Power (NPI). These companies are all part of the "utilities" sector.
Hydro One (TSE:H) and Fortis (TSE:FTS) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, community ranking, institutional ownership, media sentiment, valuation, risk, earnings, analyst recommendations and profitability.
Hydro One has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Fortis has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.
Fortis received 235 more outperform votes than Hydro One when rated by MarketBeat users. Likewise, 67.67% of users gave Fortis an outperform vote while only 64.93% of users gave Hydro One an outperform vote.
Fortis has higher revenue and earnings than Hydro One. Fortis is trading at a lower price-to-earnings ratio than Hydro One, indicating that it is currently the more affordable of the two stocks.
Hydro One presently has a consensus target price of C$39.83, indicating a potential downside of 0.86%. Fortis has a consensus target price of C$57.38, indicating a potential upside of 3.40%. Given Fortis' higher possible upside, analysts plainly believe Fortis is more favorable than Hydro One.
Fortis has a net margin of 14.11% compared to Hydro One's net margin of 13.83%. Hydro One's return on equity of 9.45% beat Fortis' return on equity.
In the previous week, Hydro One had 16 more articles in the media than Fortis. MarketBeat recorded 18 mentions for Hydro One and 2 mentions for Fortis. Fortis' average media sentiment score of 0.34 beat Hydro One's score of 0.24 indicating that Fortis is being referred to more favorably in the news media.
21.8% of Hydro One shares are held by institutional investors. Comparatively, 57.8% of Fortis shares are held by institutional investors. 47.2% of Hydro One shares are held by insiders. Comparatively, 0.0% of Fortis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Hydro One pays an annual dividend of C$1.19 per share and has a dividend yield of 3.0%. Fortis pays an annual dividend of C$2.36 per share and has a dividend yield of 4.3%. Hydro One pays out 65.7% of its earnings in the form of a dividend. Fortis pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Fortis beats Hydro One on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding H 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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