Avangrid (NYSE:AGR) and Great Plains Energy (NYSE:GXP) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares Avangrid and Great Plains Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avangrid $6.48 billion 2.48 $595.00 million $2.21 23.55
Great Plains Energy $2.71 billion 0.00 -$106.20 million $1.74 N/A

Avangrid has higher revenue and earnings than Great Plains Energy. Great Plains Energy is trading at a lower price-to-earnings ratio than Avangrid, indicating that it is currently the more affordable of the two stocks.

Dividends

Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. Great Plains Energy pays an annual dividend of $0.28 per share. Avangrid pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Great Plains Energy pays out 16.1% of its earnings in the form of a dividend. Avangrid has raised its dividend for 2 consecutive years and Great Plains Energy has raised its dividend for 8 consecutive years.

Institutional and Insider Ownership

14.8% of Avangrid shares are owned by institutional investors. 0.4% of Avangrid shares are owned by company insiders. Comparatively, 0.4% of Great Plains Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Avangrid and Great Plains Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avangrid 9.18% 4.43% 2.15%
Great Plains Energy N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Avangrid and Great Plains Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avangrid 1 6 1 0 2.00
Great Plains Energy 0 0 2 0 3.00

Avangrid currently has a consensus price target of $52.79, indicating a potential upside of 1.43%. Great Plains Energy has a consensus price target of $34.00, indicating a potential upside of ∞. Given Great Plains Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Great Plains Energy is more favorable than Avangrid.

Summary

Avangrid beats Great Plains Energy on 10 of the 15 factors compared between the two stocks.

Avangrid Company Profile

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 19, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is based in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Great Plains Energy Company Profile

Great Plains Energy Incorporated, through its subsidiaries, generates, transmits, distributes, and sells electricity. It also provides regulated steam services in St. Joseph, Missouri. The company generates electricity using coal, nuclear, natural gas, oil, wind, solar, landfill gas, and hydroelectric resources. It has approximately 6,500 megawatts of generating capacity. The company sells electricity to approximately 867,100 customers in western Missouri and eastern Kansas, including approximately 764,200 residences and 100,400 commercial firms, as well as 2,500 industrials, municipalities, and other electric utilities. Great Plains Energy Incorporated was founded in 1919 and is headquartered in Kansas City, Missouri.

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