AES (NYSE:AES – Get Free Report) and American Power Group (OTCMKTS:APGI – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares AES and American Power Group”s 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 | 7.85 |
| American Power Group | $2.13 million | 6.63 | -$1.71 million | N/A | N/A |
Insider and Institutional Ownership
93.1% of AES shares are held by institutional investors. 0.8% of AES shares are held by insiders. Comparatively, 75.8% of American Power Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
AES has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, American Power Group has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Profitability
This table compares AES and American Power Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AES | 10.78% | 22.66% | 3.84% |
| American Power Group | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and price targets for AES and American Power Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AES | 0 | 8 | 0 | 0 | 2.00 |
| American Power Group | 0 | 0 | 0 | 0 | 0.00 |
AES presently has a consensus price target of $15.71, suggesting a potential upside of 7.01%. Given AES’s stronger consensus rating and higher possible upside, analysts plainly believe AES is more favorable than American Power Group.
Summary
AES beats American Power Group on 9 of the 11 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 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.
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