Eversource Energy (NYSE:ES – Get Free Report) and RWE (OTCMKTS:RWEOY – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Earnings & Valuation
This table compares Eversource Energy and RWE”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eversource Energy | N/A | N/A | N/A | $3.86 | 17.55 |
| RWE | N/A | N/A | N/A | $5.26 | 12.20 |
RWE is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Eversource Energy and RWE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eversource Energy | N/A | N/A | N/A |
| RWE | N/A | N/A | N/A |
Institutional and Insider Ownership
80.0% of Eversource Energy shares are owned by institutional investors. 0.2% of Eversource Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Eversource Energy and RWE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eversource Energy | 3 | 6 | 4 | 0 | 2.08 |
| RWE | 0 | 4 | 3 | 1 | 2.62 |
Eversource Energy currently has a consensus price target of $72.91, suggesting a potential upside of 7.61%. Given Eversource Energy’s higher probable upside, equities analysts plainly believe Eversource Energy is more favorable than RWE.
Summary
Eversource Energy beats RWE on 4 of the 7 factors compared between the two stocks.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
About RWE
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.
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