Head-To-Head Contrast: Itm Power (OTCMKTS:ITMPF) versus AES (NYSE:AES)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for AES and Itm Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES	0	8	0	0	2.00
Itm Power	0	1	1	0	2.50

AES presently has a consensus price target of $15.71, indicating a potential upside of 6.72%. Given AES’s higher possible upside, equities analysts plainly believe AES is more favorable than Itm Power.

Earnings & Valuation

This table compares AES and Itm Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$12.23 billion	0.86	$910.00 million	$1.87	7.87
Itm Power	$33.35 million	27.21	-$58.30 million	N/A	N/A

AES has higher revenue and earnings than Itm Power.

Institutional & Insider Ownership

93.1% of AES shares are owned by institutional investors. 0.8% of AES shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

AES has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Itm Power has a beta of 3.33, meaning that its share price is 233% more volatile than the S&P 500.

Profitability

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

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

Summary

AES beats Itm Power on 8 of the 12 factors compared between the two stocks.

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.

About Itm Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.