Critical Survey: AuraSource (OTCMKTS:ARAO) versus CMS Energy (NYSE:CMS)

AuraSource (OTCMKTS:ARAO) and CMS Energy (NYSE:CMS) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares AuraSource and CMS Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AuraSource	N/A	N/A	N/A
CMS Energy	11.64%	10.76%	2.62%

Analyst Recommendations

This is a summary of current recommendations and price targets for AuraSource and CMS Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AuraSource	0	0	0	0	0.00
CMS Energy	0	6	6	0	2.50

CMS Energy has a consensus price target of $81.83, indicating a potential upside of 19.56%. Given CMS Energy’s stronger consensus rating and higher probable upside, analysts clearly believe CMS Energy is more favorable than AuraSource.

Institutional & Insider Ownership

22.2% of AuraSource shares are owned by institutional investors. Comparatively, 93.6% of CMS Energy shares are owned by institutional investors. 4.7% of AuraSource shares are owned by insiders. Comparatively, 0.5% of CMS Energy shares are owned 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.

Earnings & Valuation

This table compares AuraSource and CMS Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AuraSource	N/A	N/A	N/A	($0.05)	-0.01
CMS Energy	$8.81 billion	2.44	$1.07 billion	$3.33	20.55

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

Summary

CMS Energy beats AuraSource on 10 of the 11 factors compared between the two stocks.

About AuraSource

AuraSource, Inc. focuses on sales of electric automobiles. It operates through two segments, AuraMetal and AuraMoto. The AuraMetal segment focuses on the development and production of environmentally friendly and beneficiation process for complex ore, tailings, and slimes materials as industrial application solutions. The AuraMoto segment focuses on sourcing various vendors and customers in the automotive industry. AuraSource, Inc. is based in Tempe, Arizona.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.