Central Puerto (NYSE:CEPU – Get Free Report) and Northland Power (OTCMKTS:NPIFF – Get Free Report) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by 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 Central Puerto and Northland Power, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Puerto | 0 | 1 | 2 | 0 | 2.67 |
| Northland Power | 0 | 3 | 4 | 0 | 2.57 |
Profitability
This table compares Central Puerto and Northland Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Central Puerto | 29.58% | 16.32% | 10.91% |
| Northland Power | -5.60% | 10.29% | 3.31% |
Risk and Volatility
Central Puerto has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Northland Power has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Earnings & Valuation
This table compares Central Puerto and Northland Power”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Puerto | $782.60 million | 2.40 | $277.08 million | $3.00 | 4.13 |
| Northland Power | $1.74 billion | 2.39 | -$116.84 million | ($0.41) | -38.85 |
Central Puerto has higher earnings, but lower revenue than Northland Power. Northland Power is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.
Dividends
Central Puerto pays an annual dividend of $0.90 per share and has a dividend yield of 7.3%. Northland Power pays an annual dividend of $0.52 per share and has a dividend yield of 3.3%. Central Puerto pays out 30.0% of its earnings in the form of a dividend. Northland Power pays out -126.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Central Puerto beats Northland Power on 13 of the 16 factors compared between the two stocks.
About Central Puerto
Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.
About Northland Power
Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in Canada, Netherlands, Germany, Spain, Colombia, and internationally. The company produces electricity from renewable resources, such as wind and solar, as well as natural gas for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest 3.4 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.
Receive News & Ratings for Central Puerto Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Central Puerto and related companies with MarketBeat.com's FREE daily email newsletter.
