Northland Power (OTCMKTS:NPIFF) & Kyushu Electric Power (OTCMKTS:KYSEY) Financial Analysis

Kyushu Electric Power (OTCMKTS:KYSEY) and Northland Power (OTCMKTS:NPIFF) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Dividends

Kyushu Electric Power pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. Northland Power pays an annual dividend of $0.51 per share and has a dividend yield of 3.3%. Kyushu Electric Power pays out -0.1% of its earnings in the form of a dividend. Northland Power pays out -124.4% 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. Northland Power is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kyushu Electric Power and Northland Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyushu Electric Power	0	1	0	0	2.00
Northland Power	0	3	4	0	2.57

Earnings & Valuation

This table compares Kyushu Electric Power and Northland Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyushu Electric Power	N/A	N/A	N/A	($203.58)	-0.06
Northland Power	$1.74 billion	2.33	-$116.84 million	($0.41)	-37.95

Kyushu Electric Power has higher earnings, but lower revenue than Northland Power. Northland Power is trading at a lower price-to-earnings ratio than Kyushu Electric Power, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kyushu Electric Power and Northland Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyushu Electric Power	N/A	N/A	N/A
Northland Power	-5.60%	10.37%	3.30%

Summary

Northland Power beats Kyushu Electric Power on 8 of the 10 factors compared between the two stocks.

About Kyushu Electric Power

Kyushu Electric Power Company, Incorporated engages in the power generation, transmission, distribution, and sales in Japan and internationally. The company operates through Power Generation and Sales Business, Transmission and Distribution Business, ICT Services Business, Urban Development Business, Overseas Businesses, and Other Energy Services Business segments. It generates hydroelectric, thermal, geothermal, nuclear, and other power energy facilities. In addition, the company constructs, maintains, and sells electrical equipment, gas/LNG, coal, and renewable energy related services. Further, it is involved in data communication, optical broadband, information system, and data center business, as well as constructs and maintains telecommunications related services. Additionally, the company engages in development of real estate and social infrastructure business. Kyushu Electric Power Company, Incorporated was incorporated in 1951 and is headquartered in Fukuoka City, Japan.

About Northland Power

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in Canada, Netherlands, Germany, Spain, Colombia, and internationally. The company produces electricity from renewable resources, such as wind and solar, as well as natural gas for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest 3.4 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.