Analyzing Brookfield Infrastructure (NYSE:BIPC) & E.On (OTCMKTS:EONGY)

Brookfield Infrastructure (NYSE:BIPC) and E.On (OTCMKTS:EONGY) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk & Volatility

Brookfield Infrastructure has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, E.On has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Brookfield Infrastructure and E.On”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Infrastructure	$3.70 billion	1.23	N/A	N/A	N/A
E.On	$89.03 billion	0.59	$1.96 billion	$1.50	13.49

E.On has higher revenue and earnings than Brookfield Infrastructure.

Dividends

Brookfield Infrastructure pays an annual dividend of $1.82 per share and has a dividend yield of 4.9%. E.On pays an annual dividend of $0.49 per share and has a dividend yield of 2.4%. E.On pays out 32.7% of its earnings in the form of a dividend. Brookfield Infrastructure has raised its dividend for 5 consecutive years. Brookfield Infrastructure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Brookfield Infrastructure and E.On’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Infrastructure	N/A	N/A	N/A
E.On	4.49%	11.54%	2.72%

Institutional & Insider Ownership

70.4% of Brookfield Infrastructure shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Brookfield Infrastructure and E.On, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Infrastructure	2	0	0	0	1.00
E.On	0	5	2	1	2.50

Brookfield Infrastructure presently has a consensus price target of $50.00, indicating a potential upside of 35.14%. Given Brookfield Infrastructure’s higher probable upside, research analysts plainly believe Brookfield Infrastructure is more favorable than E.On.

Summary

Brookfield Infrastructure beats E.On on 8 of the 15 factors compared between the two stocks.

About Brookfield Infrastructure

Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.