Head to Head Survey: Hydro One (OTCMKTS:HRNNF) versus Alaska Power & Telephone (OTCMKTS:APTL)

Alaska Power & Telephone (OTCMKTS:APTL) and Hydro One (OTCMKTS:HRNNF) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Valuation and Earnings

This table compares Alaska Power & Telephone and Hydro One”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alaska Power & Telephone	$69.33 million	1.13	$5.62 million	$5.34	15.81
Hydro One	$6.47 billion	3.72	$958.32 million	$1.71	23.43

Hydro One has higher revenue and earnings than Alaska Power & Telephone. Alaska Power & Telephone is trading at a lower price-to-earnings ratio than Hydro One, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alaska Power & Telephone and Hydro One, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alaska Power & Telephone	0	0	0	0	0.00
Hydro One	1	5	1	0	2.00

Profitability

This table compares Alaska Power & Telephone and Hydro One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alaska Power & Telephone	6.80%	N/A	N/A
Hydro One	14.88%	11.02%	3.56%

Dividends

Alaska Power & Telephone pays an annual dividend of $1.75 per share and has a dividend yield of 2.1%. Hydro One pays an annual dividend of $1.02 per share and has a dividend yield of 2.5%. Alaska Power & Telephone pays out 32.8% of its earnings in the form of a dividend. Hydro One pays out 59.6% 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.

Summary

Hydro One beats Alaska Power & Telephone on 10 of the 12 factors compared between the two stocks.

About Alaska Power & Telephone

Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 125,000 circuit kilometers primary low-voltage distribution lines. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.