MDU Resources Group (NYSE:MDU) and Algonquin Power & Utilities (NYSE:AQN) Financial Survey

Algonquin Power & Utilities (NYSE:AQN) and MDU Resources Group (NYSE:MDU) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Valuation and Earnings

This table compares Algonquin Power & Utilities and MDU Resources Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algonquin Power & Utilities	$2.43 billion	1.81	$180.80 million	$0.19	30.05
MDU Resources Group	$1.83 billion	2.27	$190.40 million	$0.95	21.34

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

Profitability

This table compares Algonquin Power & Utilities and MDU Resources Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algonquin Power & Utilities	5.77%	5.16%	1.79%
MDU Resources Group	10.75%	6.89%	2.58%

Risk & Volatility

Algonquin Power & Utilities has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, MDU Resources Group has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Dividends

Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.6%. MDU Resources Group pays an annual dividend of $0.58 per share and has a dividend yield of 2.9%. 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. MDU Resources Group pays out 61.1% of its earnings in the form of a dividend. MDU Resources Group has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Algonquin Power & Utilities and MDU Resources Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algonquin Power & Utilities	0	5	6	0	2.55
MDU Resources Group	0	4	3	0	2.43

Algonquin Power & Utilities currently has a consensus target price of $6.81, suggesting a potential upside of 19.19%. MDU Resources Group has a consensus target price of $23.40, suggesting a potential upside of 15.44%. Given Algonquin Power & Utilities’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Algonquin Power & Utilities is more favorable than MDU Resources Group.

Institutional and Insider Ownership

62.3% of Algonquin Power & Utilities shares are held by institutional investors. Comparatively, 71.4% of MDU Resources Group shares are held by institutional investors. 0.1% of Algonquin Power & Utilities shares are held by insiders. Comparatively, 0.5% of MDU Resources Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

MDU Resources Group beats Algonquin Power & Utilities on 10 of the 17 factors compared between the two stocks.

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.

About MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.