Contrasting Avista (NYSE:AVA) and Brookfield Infrastructure Partners (NYSE:BIP)

Brookfield Infrastructure Partners (NYSE:BIP – Get Free Report) and Avista (NYSE:AVA – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Brookfield Infrastructure Partners has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Avista has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

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Profitability

This table compares Brookfield Infrastructure Partners and Avista’s net margins, return on equity and return on assets.

Institutional and Insider Ownership

57.9% of Brookfield Infrastructure Partners shares are owned by institutional investors. Comparatively, 85.2% of Avista shares are owned by institutional investors. 0.8% of Avista shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Brookfield Infrastructure Partners and Avista, as provided by MarketBeat.com.

Brookfield Infrastructure Partners presently has a consensus target price of $45.11, suggesting a potential upside of 13.54%. Avista has a consensus target price of $39.25, suggesting a potential upside of 1.84%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Brookfield Infrastructure Partners is more favorable than Avista.

Earnings & Valuation

This table compares Brookfield Infrastructure Partners and Avista”s revenue, earnings per share and valuation.

Brookfield Infrastructure Partners has higher revenue and earnings than Avista. Avista is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Brookfield Infrastructure Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.6%. Avista pays an annual dividend of $1.97 per share and has a dividend yield of 5.1%. Brookfield Infrastructure Partners pays out 293.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avista pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners has raised its dividend for 18 consecutive years and Avista has raised its dividend for 23 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Avista beats Brookfield Infrastructure Partners on 10 of the 17 factors compared between the two stocks.

About Brookfield Infrastructure Partners

(Get Free Report)

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.

About Avista

(Get Free Report)

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

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