Head to Head Comparison: Brookfield Infrastructure Partners (NYSE:BIP) & Iberdrola (OTCMKTS:IBDSF)

Iberdrola (OTCMKTS:IBDSF) and Brookfield Infrastructure Partners (NYSE:BIP) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

16.5% of Iberdrola shares are held by institutional investors. Comparatively, 57.9% of Brookfield Infrastructure Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Iberdrola pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. Brookfield Infrastructure Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.5%. Iberdrola pays out 7.1% of its earnings in the form of a dividend. Brookfield Infrastructure Partners pays out 293.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners has increased its dividend for 18 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Iberdrola and Brookfield Infrastructure Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	0	0	0	0	0.00
Brookfield Infrastructure Partners	0	3	8	0	2.73

Brookfield Infrastructure Partners has a consensus price target of $45.11, indicating a potential upside of 12.56%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Infrastructure Partners is more favorable than Iberdrola.

Valuation & Earnings

This table compares Iberdrola and Brookfield Infrastructure Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	N/A	N/A	N/A	$0.33	71.64
Brookfield Infrastructure Partners	$23.10 billion	0.80	$771.00 million	$0.62	64.64

Brookfield Infrastructure Partners has higher revenue and earnings than Iberdrola. Brookfield Infrastructure Partners is trading at a lower price-to-earnings ratio than Iberdrola, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Iberdrola and Brookfield Infrastructure Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	N/A	N/A	N/A
Brookfield Infrastructure Partners	3.51%	2.59%	0.70%

Summary

Brookfield Infrastructure Partners beats Iberdrola on 11 of the 13 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.