United Utilities Group (OTCMKTS:UUGRY – Get Free Report) and TransAlta (NYSE:TAC – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Insider and Institutional Ownership
59.0% of TransAlta shares are held by institutional investors. 13.1% of TransAlta shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
United Utilities Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, TransAlta has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.
Dividends
Analyst Recommendations
This is a breakdown of current ratings and target prices for United Utilities Group and TransAlta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Utilities Group | 0 | 4 | 3 | 1 | 2.63 |
| TransAlta | 1 | 1 | 6 | 1 | 2.78 |
TransAlta has a consensus target price of $22.25, suggesting a potential upside of 60.82%. Given TransAlta’s stronger consensus rating and higher probable upside, analysts plainly believe TransAlta is more favorable than United Utilities Group.
Valuation and Earnings
This table compares United Utilities Group and TransAlta”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Utilities Group | $3.51 billion | 3.67 | $786.53 million | N/A | N/A |
| TransAlta | $1.72 billion | 2.54 | -$98.77 million | ($0.54) | -25.62 |
United Utilities Group has higher revenue and earnings than TransAlta.
Profitability
This table compares United Utilities Group and TransAlta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Utilities Group | N/A | N/A | N/A |
| TransAlta | -9.46% | 9.52% | 0.66% |
Summary
TransAlta beats United Utilities Group on 9 of the 15 factors compared between the two stocks.
About United Utilities Group
United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.
About TransAlta
TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario. The Wind and Solar segment has a net ownership interest of approximately 2,057 MW of owned wind and solar electrical-generating capacity, as well as battery storage facilities located in Alberta, Ontario, New Brunswick, and Québec in Canada; the states of Massachusetts, Minnesota, New Hampshire, North Carolina, Pennsylvania, Washington, and Wyoming in the United States; and the state of Western Australia. The Gas segment has a net ownership interest of approximately 2,775 MW of owned gas electrical-generating capacity, and facilities located in Alberta, Ontario, Michigan, and the state of Western Australia. The Energy Transition segment has a net ownership interest of approximately 671 MW of owned coal electrical-generating capacity, as well as operates the Skookumchuck hydro facility in Centralia; and engages in the highvale mine and the mine reclamation activities. The Energy Marketing segment is involved in the trading of power, natural gas, and environmental products. It serves customers in various industry segments, including commercial real estate, municipal, manufacturing, industrial, hospitality, finance, and oil and gas. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.
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