A2A (OTCMKTS:AEMMY – Get Free Report) and NiSource (NYSE:NI – 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 valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Profitability
This table compares A2A and NiSource’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A2A | N/A | N/A | N/A |
| NiSource | 13.20% | 7.95% | 2.57% |
Earnings & Valuation
This table compares A2A and NiSource”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A2A | N/A | N/A | N/A | N/A | N/A |
| NiSource | $6.88 billion | 2.91 | $929.50 million | $1.88 | 22.18 |
NiSource has higher revenue and earnings than A2A.
Institutional & Insider Ownership
91.6% of NiSource shares are held by institutional investors. 0.4% of NiSource shares are held by company 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.
Analyst Recommendations
This is a breakdown of current recommendations for A2A and NiSource, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A2A | 0 | 0 | 0 | 0 | 0.00 |
| NiSource | 0 | 2 | 10 | 0 | 2.83 |
NiSource has a consensus price target of $49.82, suggesting a potential upside of 19.50%. Given NiSource’s stronger consensus rating and higher probable upside, analysts plainly believe NiSource is more favorable than A2A.
Summary
NiSource beats A2A on 9 of the 9 factors compared between the two stocks.
About A2A
A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.
About NiSource
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
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