Head to Head Analysis: CLP (OTCMKTS:CLPHY) vs. Ameren (NYSE:AEE)

CLP (OTCMKTS:CLPHY) and Ameren (NYSE:AEE) are both large-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares CLP and Ameren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLP	N/A	N/A	N/A
Ameren	17.17%	10.94%	2.99%

Dividends

CLP pays an annual dividend of $0.63 per share and has a dividend yield of 6.4%. Ameren pays an annual dividend of $3.00 per share and has a dividend yield of 2.7%. Ameren pays out 54.0% of its earnings in the form of a dividend. Ameren has raised its dividend for 12 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for CLP and Ameren, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLP	0	2	0	0	2.00
Ameren	0	5	9	0	2.64

Ameren has a consensus price target of $117.54, indicating a potential upside of 5.86%. Given Ameren’s stronger consensus rating and higher possible upside, analysts plainly believe Ameren is more favorable than CLP.

Institutional & Insider Ownership

79.1% of Ameren shares are held by institutional investors. 0.3% of Ameren shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

CLP has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Ameren has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares CLP and Ameren”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLP	$11.29 billion	2.21	$1.46 billion	N/A	N/A
Ameren	$8.80 billion	3.49	$1.46 billion	$5.56	19.97

Ameren has lower revenue, but higher earnings than CLP.

Summary

Ameren beats CLP on 12 of the 15 factors compared between the two stocks.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.

About Ameren

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.