NiSource (NYSE:NI) and EuroSite Power (OTCMKTS:EUSP) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for NiSource and EuroSite Power, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NiSource 1 6 6 0 2.38
EuroSite Power 0 0 0 0 N/A

NiSource currently has a consensus price target of $27.20, suggesting a potential upside of 3.78%. Given NiSource’s higher probable upside, analysts plainly believe NiSource is more favorable than EuroSite Power.

Profitability

This table compares NiSource and EuroSite Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NiSource -1.82% 9.30% 2.13%
EuroSite Power -13.43% -4.91% -4.34%

Insider and Institutional Ownership

90.7% of NiSource shares are owned by institutional investors. 0.4% of NiSource shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

NiSource pays an annual dividend of $0.78 per share and has a dividend yield of 3.0%. EuroSite Power does not pay a dividend. NiSource pays out 64.5% of its earnings in the form of a dividend.

Volatility and Risk

NiSource has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, EuroSite Power has a beta of -0.73, indicating that its share price is 173% less volatile than the S&P 500.

Earnings & Valuation

This table compares NiSource and EuroSite Power’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NiSource $4.87 billion 1.95 $128.50 million $1.21 21.66
EuroSite Power $3.65 million 3.04 -$700,000.00 N/A N/A

NiSource has higher revenue and earnings than EuroSite Power.

Summary

NiSource beats EuroSite Power on 11 of the 13 factors compared between the two stocks.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. The company operates in two segments, Gas Distribution Operations and Electric Operations. It provides natural gas service and transportation to residential, commercial, and industrial customers; generates, transmits, and distributes electricity; and offers wholesale and transmission transaction services. The company serves approximately 3.5 million natural gas customers and 469,000 electricity customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts. It also owns and operates three coal-fired electric generating stations with a net capability of 2,540 megawatts (MW), three gas-fired generating units with a net capability of 196 MW, and two hydroelectric generating plants with a net capability of 10 MW, as well as a combined cycle gas turbine plant with a net capability of 535 MW. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1912 and is headquartered in Merrillville, Indiana.

About EuroSite Power

EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.

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