Analyzing Premier (PRHL) & Fortis (FTS)
Premier (NYSE: FTS) and Fortis (NYSE:FTS) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Risk & Volatility
Premier has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Fortis has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.
This table compares Premier and Fortis’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Premier||$4.79 million||1.84||-$5.59 million||N/A||N/A|
|Fortis||$6.40 billion||2.16||$792.99 million||$1.95||16.70|
Fortis has higher revenue and earnings than Premier.
Insider & Institutional Ownership
50.5% of Fortis shares are owned by institutional investors. 39.3% of Premier shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Fortis pays an annual dividend of $1.30 per share and has a dividend yield of 4.0%. Premier does not pay a dividend. Fortis pays out 66.7% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Premier and Fortis, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortis has a consensus target price of $51.00, suggesting a potential upside of 56.59%. Given Fortis’ higher probable upside, analysts plainly believe Fortis is more favorable than Premier.
This table compares Premier and Fortis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Fortis beats Premier on 10 of the 13 factors compared between the two stocks.
Premier Holding Corporation, through its subsidiaries, provides energy efficiency products and services primarily to commercial middle market companies and residential customers in the United States. The company offers various electricity plans and upgrades to a facility's energy infrastructure. It also offers deregulated power brokerage services. The company was formerly known as OVM International Holding Corporation and changed its name to Premier Holding Corporation in November 2008. Premier Holding Corporation was founded in 1971 and is based in Tustin, California.
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 422,000 retail customers in southeastern Arizona; and 96,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 2,834 megawatts (MW), including 64 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 1,008,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 556,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 266,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 80,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 66,000 customers in Ontario; approximately 44,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and the Aitken Creek natural gas storage facility. It also owns and operates transmission and distribution lines; and natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
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