Head-To-Head Comparison: Hydro One (HRNNF) & Its Competitors

Hydro One (OTCMKTS:HRNNF) is one of 105 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its rivals? We will compare Hydro One to similar businesses based on the strength of its valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares Hydro One and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydro One	14.80%	10.83%	3.53%
Hydro One Competitors	13.49%	9.64%	3.14%

Valuation and Earnings

This table compares Hydro One and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hydro One	$6.47 billion	$958.32 million	33.15
Hydro One Competitors	$24.75 billion	$1.54 billion	21.06

Hydro One’s rivals have higher revenue and earnings than Hydro One. Hydro One is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

59.9% of shares of all “Electric Utilities” companies are held by institutional investors. 6.2% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hydro One and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	1	6	0	0	1.86
Hydro One Competitors	1384	6363	5304	136	2.32

As a group, “Electric Utilities” companies have a potential upside of 10.58%. Given Hydro One’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Hydro One has less favorable growth aspects than its rivals.

Dividends

Hydro One pays an annual dividend of $1.02 per share and has a dividend yield of 2.4%. Hydro One pays out 81.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.3% and pay out 65.0% of their earnings in the form of a dividend. Hydro One lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Hydro One rivals beat Hydro One on 10 of the 14 factors compared.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 125,000 circuit kilometers primary low-voltage distribution lines. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.