Exelon (NASDAQ:EXC – Get Free Report) and Caribbean Utilities (OTCMKTS:CUPUF – 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 profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Insider and Institutional Ownership
80.9% of Exelon shares are owned by institutional investors. Comparatively, 0.1% of Caribbean Utilities shares are owned by institutional investors. 0.1% of Exelon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Dividends
Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 3.8%. Caribbean Utilities pays an annual dividend of $0.66 per share and has a dividend yield of 4.6%. Exelon pays out 61.5% of its earnings in the form of a dividend. Caribbean Utilities pays out 94.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon has raised its dividend for 3 consecutive years.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exelon | $24.26 billion | 1.86 | $2.77 billion | $2.73 | 16.01 |
| Caribbean Utilities | N/A | N/A | N/A | $0.70 | 20.82 |
Exelon has higher revenue and earnings than Caribbean Utilities. Exelon is trading at a lower price-to-earnings ratio than Caribbean Utilities, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Exelon and Caribbean Utilities, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exelon | 1 | 13 | 4 | 0 | 2.17 |
| Caribbean Utilities | 0 | 0 | 0 | 0 | 0.00 |
Exelon presently has a consensus target price of $50.07, suggesting a potential upside of 14.52%. Given Exelon’s stronger consensus rating and higher probable upside, equities analysts plainly believe Exelon is more favorable than Caribbean Utilities.
Profitability
This table compares Exelon and Caribbean Utilities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exelon | 10.99% | 9.81% | 2.43% |
| Caribbean Utilities | N/A | N/A | N/A |
Summary
Exelon beats Caribbean Utilities on 12 of the 14 factors compared between the two stocks.
About Exelon
Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.
About Caribbean Utilities
Caribbean Utilities Company, Ltd. engages in the generation, transmission, and distribution of electricity in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates nine transformer substations with approximately 436 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cables. The company also provides telecommunication services. The company was incorporated in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.
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