Analyzing Power Assets (OTCMKTS:HGKGY) & Public Service Enterprise Group (NYSE:PEG)

Power Assets (OTCMKTS:HGKGY) and Public Service Enterprise Group (NYSE:PEG) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Power Assets and Public Service Enterprise Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Assets	$98.89 million	152.36	$800.08 million	N/A	N/A
Public Service Enterprise Group	$12.17 billion	3.20	$2.11 billion	$4.52	17.28

Public Service Enterprise Group has higher revenue and earnings than Power Assets.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Power Assets and Public Service Enterprise Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Assets	0	0	0	0	0.00
Public Service Enterprise Group	0	7	7	1	2.60

Public Service Enterprise Group has a consensus target price of $93.19, indicating a potential upside of 19.29%. Given Public Service Enterprise Group’s stronger consensus rating and higher possible upside, analysts plainly believe Public Service Enterprise Group is more favorable than Power Assets.

Dividends

Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 6.8%. Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.4%. Public Service Enterprise Group pays out 59.3% of its earnings in the form of a dividend. Public Service Enterprise Group has increased its dividend for 14 consecutive years.

Volatility & Risk

Power Assets has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Public Service Enterprise Group has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Profitability

This table compares Power Assets and Public Service Enterprise Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Assets	N/A	N/A	N/A
Public Service Enterprise Group	17.69%	12.30%	3.66%

Insider and Institutional Ownership

73.3% of Public Service Enterprise Group shares are held by institutional investors. 1.0% of Power Assets shares are held by insiders. Comparatively, 0.2% of Public Service Enterprise Group shares 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.

Summary

Public Service Enterprise Group beats Power Assets on 12 of the 16 factors compared between the two stocks.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.