Ameren (NYSE:AEE) vs. Commerce Energy Group (OTCMKTS:CMNR) Critical Analysis

Ameren (NYSE:AEE) and Commerce Energy Group (OTCMKTS:CMNR) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Ameren and Commerce Energy Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameren	$8.80 billion	3.57	$1.46 billion	$5.35	21.24
Commerce Energy Group	N/A	N/A	N/A	N/A	N/A

Ameren has higher revenue and earnings than Commerce Energy Group.

Insider and Institutional Ownership

79.1% of Ameren shares are held by institutional investors. 0.3% of Ameren shares are held by insiders. Comparatively, 0.9% of Commerce Energy Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ameren and Commerce Energy Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameren	16.55%	10.69%	2.91%
Commerce Energy Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Ameren and Commerce Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameren	0	6	7	1	2.64
Commerce Energy Group	0	0	0	0	0.00

Ameren presently has a consensus price target of $117.31, indicating a potential upside of 3.24%. Given Ameren’s stronger consensus rating and higher possible upside, analysts plainly believe Ameren is more favorable than Commerce Energy Group.

Summary

Ameren beats Commerce Energy Group on 9 of the 10 factors compared between the two stocks.

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.

About Commerce Energy Group

Commerce Energy Group Inc. through its subsidiaries provides electric power and natural gas to residential, commercial, industrial and institutional customers in California, Pennsylvania, Michigan, Maryland, New Jersey, Texas, Florida, Georgia, Nevada, and Ohio. The company was founded in 1997 and is based in Costa Mesa, California.