Analyzing Algonquin Power & Utilities (NYSE:AQN) & Iren (OTCMKTS:IRDEY)

Iren (OTCMKTS:IRDEY) and Algonquin Power & Utilities (NYSE:AQN) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Iren and Algonquin Power & Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iren	N/A	N/A	N/A
Algonquin Power & Utilities	5.77%	5.16%	1.79%

Earnings & Valuation

This table compares Iren and Algonquin Power & Utilities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iren	N/A	N/A	N/A	$0.61	47.49
Algonquin Power & Utilities	$2.43 billion	1.80	$180.80 million	$0.19	29.92

Algonquin Power & Utilities has higher revenue and earnings than Iren. Algonquin Power & Utilities is trading at a lower price-to-earnings ratio than Iren, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

62.3% of Algonquin Power & Utilities shares are held by institutional investors. 0.1% of Algonquin Power & Utilities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Iren pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.6%. Iren pays out 62.8% of its earnings in the form of a dividend. Algonquin Power & Utilities pays out 136.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Iren and Algonquin Power & Utilities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iren	0	0	0	0	0.00
Algonquin Power & Utilities	0	5	6	0	2.55

Algonquin Power & Utilities has a consensus target price of $6.81, indicating a potential upside of 19.71%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, analysts plainly believe Algonquin Power & Utilities is more favorable than Iren.

Summary

Algonquin Power & Utilities beats Iren on 10 of the 13 factors compared between the two stocks.

About Iren

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents; 11,279 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 35 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 105 photovoltaic production plants with an installed capacity of 142 MW. Iren SpA is based in Reggio Emilia, Italy.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.