Reviewing Tennessee Valley Authority PARRS A 2029 (NYSE:TVE) & Otter Tail (NASDAQ:OTTR)

Otter Tail (NASDAQ:OTTR) and Tennessee Valley Authority PARRS A 2029 (NYSE:TVE) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Otter Tail and Tennessee Valley Authority PARRS A 2029, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otter Tail	1	4	0	0	1.80
Tennessee Valley Authority PARRS A 2029	0	0	0	0	0.00

Otter Tail currently has a consensus target price of $86.00, indicating a potential downside of 8.31%. Given Otter Tail’s stronger consensus rating and higher possible upside, research analysts clearly believe Otter Tail is more favorable than Tennessee Valley Authority PARRS A 2029.

Profitability

This table compares Otter Tail and Tennessee Valley Authority PARRS A 2029’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otter Tail	14.83%	14.56%	6.70%
Tennessee Valley Authority PARRS A 2029	N/A	N/A	N/A

Dividends

Otter Tail pays an annual dividend of $2.31 per share and has a dividend yield of 2.5%. Tennessee Valley Authority PARRS A 2029 pays an annual dividend of $0.84 per share and has a dividend yield of 3.6%. Otter Tail pays out 49.8% of its earnings in the form of a dividend. Otter Tail has raised its dividend for 12 consecutive years.

Institutional & Insider Ownership

61.3% of Otter Tail shares are held by institutional investors. 2.0% of Otter Tail shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Otter Tail and Tennessee Valley Authority PARRS A 2029″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otter Tail	$1.30 billion	3.02	$275.89 million	$4.64	20.21
Tennessee Valley Authority PARRS A 2029	N/A	N/A	N/A	N/A	N/A

Otter Tail has higher revenue and earnings than Tennessee Valley Authority PARRS A 2029.

Summary

Otter Tail beats Tennessee Valley Authority PARRS A 2029 on 9 of the 11 factors compared between the two stocks.

About Otter Tail

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas. It serves approximately residential, commercial, and industrial customers. The Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components and extruded raw material stock for the recreational vehicle, lawn and garden, agricultural, construction, and industrial and energy equipment end markets. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

About Tennessee Valley Authority PARRS A 2029

for more than eight decades, the tennessee valley authority has provided affordable electricity, environmental stewardship and economic development opportunities to the tennessee valley. tva was established by congress in 1933 to address a wide range of environmental, economic and technological issues, including the need for low-cost electricity, and navigation and flood control along the tennessee river system. tva is fully self-financing, funding virtually all operations through electricity sales and power system bond financing. tva makes no profit and receives no tax money. tva’s power service territory includes most off tennessee and parts of alabama, georgia, kentucky, mississippi, north carolina and virginia, covering 80,000 square miles and providing electricity to more than 9 million people at prices below the national average, tva sales electricity to 155 local power companies and 57 directly served industries and federal facilities. mission: tva was built for the people – to