American Power Group (OTCMKTS:APGI) versus AES (NYSE:AES) Head to Head Review

American Power Group (OTCMKTS:APGI) and AES (NYSE:AES) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for American Power Group and AES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Power Group	0	0	0	0	0.00
AES	0	8	0	0	2.00

AES has a consensus target price of $15.71, indicating a potential upside of 6.72%. Given AES’s stronger consensus rating and higher possible upside, analysts plainly believe AES is more favorable than American Power Group.

Profitability

This table compares American Power Group and AES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Power Group	N/A	N/A	N/A
AES	14.30%	21.49%	3.76%

Risk and Volatility

American Power Group has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, AES has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

93.1% of AES shares are held by institutional investors. 75.8% of American Power Group shares are held by company insiders. Comparatively, 0.8% of AES shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares American Power Group and AES”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Power Group	$2.13 million	7.12	-$1.71 million	N/A	N/A
AES	$12.23 billion	0.86	$910.00 million	$1.87	7.87

AES has higher revenue and earnings than American Power Group.

Summary

AES beats American Power Group on 9 of the 11 factors compared between the two stocks.

About American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.

About AES

The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.