Comparing E.On (OTCMKTS:EONGY) and Canadian Utilities (OTCMKTS:CDUAF)

Canadian Utilities (OTCMKTS:CDUAF) and E.On (OTCMKTS:EONGY) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Institutional and Insider Ownership

9.7% of Canadian Utilities shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Canadian Utilities pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.4%. Canadian Utilities pays out 40.4% of its earnings in the form of a dividend. E.On pays out 32.7% 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.

Profitability

This table compares Canadian Utilities and E.On’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Utilities	N/A	N/A	N/A
E.On	4.49%	11.54%	2.72%

Earnings & Valuation

This table compares Canadian Utilities and E.On”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Utilities	N/A	N/A	N/A	$2.58	14.88
E.On	$89.03 billion	0.59	$1.96 billion	$1.50	13.43

E.On has higher revenue and earnings than Canadian Utilities. E.On is trading at a lower price-to-earnings ratio than Canadian Utilities, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Canadian Utilities and E.On, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Utilities	0	6	0	0	2.00
E.On	0	6	2	0	2.25

Summary

E.On beats Canadian Utilities on 7 of the 11 factors compared between the two stocks.

About Canadian Utilities

Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, and Corporate & Other segments. The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, the Northwest Territories, and the Lloydminster area of Saskatchewan; and integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility located near Fort Saskatchewan, Alberta in Canada. The ATCO EnPower segment provides hydro, solar, wind, and natural gas electricity generation; natural gas storage; industrial water solutions; clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon, the Northwest Territories, Australia, Ontario, Mexico, and Chile. The Corporate & Other segment retails electricity and natural gas; and provides whole-home solutions. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.