Public Service Enterprise Group (NYSE:PEG) & Canadian Utilities (OTCMKTS:CDUAF) Head-To-Head Comparison

Canadian Utilities (OTCMKTS:CDUAF) and Public Service Enterprise Group (NYSE:PEG) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares Canadian Utilities and Public Service Enterprise Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Utilities	N/A	N/A	N/A	$2.58	14.71
Public Service Enterprise Group	$12.17 billion	3.10	$2.11 billion	$4.02	18.83

Public Service Enterprise Group has higher revenue and earnings than Canadian Utilities. Canadian Utilities is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Canadian Utilities and Public Service Enterprise Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Utilities	0	6	0	0	2.00
Public Service Enterprise Group	0	10	6	1	2.47

Public Service Enterprise Group has a consensus target price of $90.63, suggesting a potential upside of 19.76%. Given Public Service Enterprise Group’s stronger consensus rating and higher possible upside, analysts plainly believe Public Service Enterprise Group is more favorable than Canadian Utilities.

Dividends

Canadian Utilities pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.5%. Canadian Utilities pays out 40.4% of its earnings in the form of a dividend. Public Service Enterprise Group pays out 66.7% 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. Public Service Enterprise Group has raised its dividend for 14 consecutive years. Public Service Enterprise Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

9.7% of Canadian Utilities shares are owned by institutional investors. Comparatively, 73.3% of Public Service Enterprise Group shares are owned by institutional investors. 0.2% of Public Service Enterprise Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Canadian Utilities and Public Service Enterprise Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Utilities	N/A	N/A	N/A
Public Service Enterprise Group	16.04%	12.42%	3.68%

Summary

Public Service Enterprise Group beats Canadian Utilities on 14 of the 15 factors compared between the two stocks.

About Canadian Utilities

Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, and Corporate & Other segments. The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, the Northwest Territories, and the Lloydminster area of Saskatchewan; and integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility located near Fort Saskatchewan, Alberta in Canada. The ATCO EnPower segment provides hydro, solar, wind, and natural gas electricity generation; natural gas storage; industrial water solutions; clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon, the Northwest Territories, Australia, Ontario, Mexico, and Chile. The Corporate & Other segment retails electricity and natural gas; and provides whole-home solutions. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.