Comparing A2A (OTCMKTS:AEMMY) and Algonquin Power & Utilities (NYSE:AQN)
by Mitch Edgeman · The Markets DailyA2A (OTCMKTS:AEMMY – Get Free Report) and Algonquin Power & Utilities (NYSE:AQN – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Profitability
This table compares A2A and Algonquin Power & Utilities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A2A | N/A | N/A | N/A |
| Algonquin Power & Utilities | 6.62% | 5.21% | 1.83% |
Earnings and Valuation
This table compares A2A and Algonquin Power & Utilities”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 |
| Algonquin Power & Utilities | $2.43 billion | 1.85 | $180.80 million | $0.22 | 26.61 |
Algonquin Power & Utilities has higher revenue and earnings than A2A.
Analyst Recommendations
This is a summary of recent recommendations for A2A and Algonquin Power & Utilities, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A2A | 0 | 0 | 0 | 0 | 0.00 |
| Algonquin Power & Utilities | 0 | 6 | 6 | 0 | 2.50 |
Algonquin Power & Utilities has a consensus target price of $6.81, suggesting a potential upside of 16.23%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, analysts clearly believe Algonquin Power & Utilities is more favorable than A2A.
Institutional and Insider Ownership
62.3% of Algonquin Power & Utilities shares are held by institutional investors. 0.1% of Algonquin Power & Utilities shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Algonquin Power & Utilities 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 Algonquin Power & Utilities
Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.