Critical Comparison: Ameren (NYSE:AEE) & Centuri (NYSE:CTRI)

Ameren (NYSE:AEEGet Free Report) and Centuri (NYSE:CTRIGet Free Report) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Valuation & Earnings

This table compares Ameren and Centuri”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ameren $8.80 billion 3.60 $1.46 billion $5.56 20.60
Centuri $2.98 billion 1.01 $22.40 million $0.34 87.63

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

Profitability

This table compares Ameren and Centuri’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ameren 17.17% 10.94% 2.99%
Centuri 0.98% 5.64% 1.81%

Institutional & Insider Ownership

79.1% of Ameren shares are owned by institutional investors. 0.3% of Ameren shares are owned by company insiders. Comparatively, 0.3% of Centuri shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Ameren has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Centuri has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Ameren and Centuri, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ameren 0 4 9 0 2.69
Centuri 2 1 2 0 2.00

Ameren currently has a consensus price target of $119.42, indicating a potential upside of 4.28%. Centuri has a consensus price target of $37.80, indicating a potential upside of 26.87%. Given Centuri’s higher probable upside, analysts clearly believe Centuri is more favorable than Ameren.

Summary

Ameren beats Centuri on 10 of the 14 factors compared between the two stocks.

About Ameren

(Get Free Report)

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.

About Centuri

(Get Free Report)

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.

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