Consolidated Edison (NYSE:ED) versus A2A (OTCMKTS:AEMMY) Head-To-Head Review
by Sarita Garza · The Markets DailyA2A (OTCMKTS:AEMMY – Get Free Report) and Consolidated Edison (NYSE:ED – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Analyst Ratings
This is a breakdown of recent recommendations for A2A and Consolidated Edison, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A2A | 0 | 0 | 0 | 0 | 0.00 |
| Consolidated Edison | 6 | 6 | 3 | 0 | 1.80 |
Consolidated Edison has a consensus price target of $108.93, indicating a potential upside of 1.43%. Given Consolidated Edison’s stronger consensus rating and higher possible upside, analysts clearly believe Consolidated Edison is more favorable than A2A.
Valuation & Earnings
This table compares A2A and Consolidated Edison”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A2A | N/A | N/A | N/A | N/A | N/A |
| Consolidated Edison | $16.92 billion | 2.35 | $2.02 billion | $6.09 | 17.64 |
Consolidated Edison has higher revenue and earnings than A2A.
Insider & Institutional Ownership
66.3% of Consolidated Edison shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares A2A and Consolidated Edison’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A2A | N/A | N/A | N/A |
| Consolidated Edison | 12.53% | 8.44% | 2.83% |
Summary
Consolidated Edison beats A2A on 9 of the 9 factors compared between the two stocks.
About A2A
A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.
About Consolidated Edison
Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.