Fortis (NYSE:FTS – Get Free Report) and CK Infrastructure (OTCMKTS:CKISY – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Fortis and CK Infrastructure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortis | 14.17% | 7.16% | 2.34% |
| CK Infrastructure | N/A | N/A | N/A |
Valuation & Earnings
This table compares Fortis and CK Infrastructure”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortis | $8.71 billion | 3.29 | $1.29 billion | $2.47 | 22.73 |
| CK Infrastructure | N/A | N/A | N/A | $62.69 | 0.66 |
Fortis has higher revenue and earnings than CK Infrastructure. CK Infrastructure is trading at a lower price-to-earnings ratio than Fortis, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
57.8% of Fortis shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Fortis and CK Infrastructure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortis | 0 | 6 | 3 | 0 | 2.33 |
| CK Infrastructure | 0 | 0 | 0 | 0 | 0.00 |
Fortis presently has a consensus target price of $66.33, suggesting a potential upside of 18.15%. Given Fortis’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Fortis is more favorable than CK Infrastructure.
Summary
Fortis beats CK Infrastructure on 9 of the 10 factors compared between the two stocks.
About Fortis
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,087,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 69,000 customers in Ontario; approximately 275,000 customers in Newfoundland and Labrador; approximately 34,000 customers on Grand Cayman, Cayman Islands; and approximately 17,000 customers on certain islands in Turks and Caicos. It also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 90,500 circuit Kilometers (km) of distribution lines; and approximately 51,600 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
About CK Infrastructure
CK Infrastructure Holdings Limited, an infrastructure company, develops, invests in, operates, and commercializes infrastructure businesses in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, and the United States. The company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure related businesses. It is also involved in the production and laying of asphalt; manufacture, distribution, and sale of cement; and property investment and project management activities. The company was formerly known as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. CK Infrastructure Holdings Limited is a subsidiary of CK Hutchison Holdings Limited.
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