Financial Analysis: Korea Electric Power (NYSE:KEP) & United Utilities Group (OTCMKTS:UUGRY)

Korea Electric Power (NYSE:KEP) and United Utilities Group (OTCMKTS:UUGRY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Korea Electric Power and United Utilities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korea Electric Power	8.80%	18.76%	3.42%
United Utilities Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Korea Electric Power and United Utilities Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Korea Electric Power	$68.57 billion	0.25	$5.98 billion	$4.70	2.79
United Utilities Group	$2.70 billion	4.50	$337.73 million	N/A	N/A

Korea Electric Power has higher revenue and earnings than United Utilities Group.

Dividends

Korea Electric Power pays an annual dividend of $0.52 per share and has a dividend yield of 4.0%. United Utilities Group pays an annual dividend of $0.90 per share and has a dividend yield of 2.5%. Korea Electric Power pays out 11.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Korea Electric Power and United Utilities Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korea Electric Power	2	1	1	0	1.75
United Utilities Group	0	4	2	1	2.57

Risk & Volatility

Korea Electric Power has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, United Utilities Group has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Summary

Korea Electric Power beats United Utilities Group on 7 of the 12 factors compared between the two stocks.

About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2022, the company had a total of 770 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,723 megawatts; transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 895 substations with an installed transformer capacity of 347,426 megavolt-amperes; and distribution system included 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also provides engineering and construction services for utility plant and others; utility plant maintenance, electric power information technology, resources development, facility maintenance, electric meter reading, and security services; and engages in nuclear fuel, fly ashes recycling, utility plants construction and operation, and wood pellet utilization businesses. Korea Electric Power Corporation was founded in 1898 and is headquartered in Naju-si, South Korea.

About United Utilities Group

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.