Pennon Group (OTCMKTS:PEGRF) & Cadiz (NASDAQ:CDZI) Head to Head Analysis
by Mitch Edgeman · The Markets DailyCadiz (NASDAQ:CDZI – Get Free Report) and Pennon Group (OTCMKTS:PEGRF – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations for Cadiz and Pennon Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| Pennon Group | 0 | 1 | 4 | 0 | 2.80 |
Cadiz presently has a consensus target price of $10.00, indicating a potential upside of 192.40%. Given Cadiz’s higher probable upside, analysts clearly believe Cadiz is more favorable than Pennon Group.
Profitability
This table compares Cadiz and Pennon Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cadiz | -311.03% | -206.79% | -26.80% |
| Pennon Group | N/A | N/A | N/A |
Insider & Institutional Ownership
79.7% of Cadiz shares are held by institutional investors. Comparatively, 44.0% of Pennon Group shares are held by institutional investors. 2.3% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Cadiz and Pennon Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $16.31 million | 17.76 | -$34.15 million | ($0.50) | -6.84 |
| Pennon Group | N/A | N/A | N/A | $0.29 | 21.47 |
Pennon Group has lower revenue, but higher earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Pennon Group, indicating that it is currently the more affordable of the two stocks.
Summary
Pennon Group beats Cadiz on 7 of the 11 factors compared between the two stocks.
About Cadiz
Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.
About Pennon Group
Pennon Group Plc provides clean water and wastewater services in the United Kingdom. It provides water and wastewater services for customers in Cornwall, Devon, and parts of Dorset and Somerset; water-only services in the areas of Dorset, Hampshire, and Wiltshire; and water and wastewater retail services to non-household customers in Great Britain. The company also offers regulated water to approximately 1.2 million customers in the Bristol region. Pennon Group Plc was incorporated in 1989 and is based in Exeter, the United Kingdom.