Comparing Siemens Energy (OTCMKTS:SMNEY) and Northland Power (OTCMKTS:NPIFF)

Siemens Energy (OTCMKTS:SMNEY) and Northland Power (OTCMKTS:NPIFF) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Risk and Volatility

Siemens Energy has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Northland Power has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Siemens Energy and Northland Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens Energy	0	3	7	0	2.70
Northland Power	0	3	4	0	2.57

Profitability

This table compares Siemens Energy and Northland Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Siemens Energy	4.75%	18.48%	3.50%
Northland Power	-5.60%	10.29%	3.31%

Valuation and Earnings

This table compares Siemens Energy and Northland Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens Energy	$43.21 billion	2.47	$1.56 billion	$2.44	51.07
Northland Power	$1.74 billion	2.37	-$116.84 million	($0.41)	-38.59

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

Dividends

Siemens Energy pays an annual dividend of $0.53 per share and has a dividend yield of 0.4%. Northland Power pays an annual dividend of $0.52 per share and has a dividend yield of 3.3%. Siemens Energy pays out 21.7% of its earnings in the form of a dividend. Northland Power pays out -126.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Northland Power is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Siemens Energy beats Northland Power on 11 of the 13 factors compared between the two stocks.

About Siemens Energy

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

About Northland Power

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in Canada, Netherlands, Germany, Spain, Colombia, and internationally. The company produces electricity from renewable resources, such as wind and solar, as well as natural gas for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest 3.4 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.