Critical Comparison: Middlesex Water (NASDAQ:MSEX) & American Energy Partners (OTCMKTS:AEPTD)

Middlesex Water (NASDAQ:MSEX) and American Energy Partners (OTCMKTS:AEPTD) are both small-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk & Volatility

Middlesex Water has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, American Energy Partners has a beta of 2.92, indicating that its stock price is 192% more volatile than the S&P 500.

Valuation & Earnings

This table compares Middlesex Water and American Energy Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlesex Water	$194.69 million	5.68	$42.82 million	$2.59	22.68
American Energy Partners	N/A	N/A	N/A	N/A	N/A

Middlesex Water has higher revenue and earnings than American Energy Partners.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Middlesex Water and American Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlesex Water	0	1	1	0	2.50
American Energy Partners	0	0	0	0	0.00

Middlesex Water presently has a consensus target price of $61.67, indicating a potential upside of 5.00%. Given Middlesex Water’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Middlesex Water is more favorable than American Energy Partners.

Profitability

This table compares Middlesex Water and American Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlesex Water	23.26%	9.59%	3.48%
American Energy Partners	N/A	N/A	N/A

Institutional and Insider Ownership

79.5% of Middlesex Water shares are held by institutional investors. 1.9% of Middlesex Water shares are held by company 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

Middlesex Water beats American Energy Partners on 9 of the 10 factors compared between the two stocks.

About Middlesex Water

Middlesex Water Company owns and operates regulated water utility and wastewater systems. It operates in Regulated and Non-Regulated segments. The Regulated segment collects, treats, and distributes water on a retail and wholesale basis to residential, commercial, industrial, and fire protection customers, as well as provides regulated wastewater systems in New Jersey and Delaware. The Non-Regulated segment provides non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Middlesex Water Company was incorporated in 1896 and is headquartered in Iselin, New Jersey.

About American Energy Partners

American Energy Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. The company engages in the design, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. It also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services. The company is based in Allentown, Pennsylvania.