Iren (OTCMKTS:IRDEY) & Consolidated Edison (NYSE:ED) Head to Head Comparison

Consolidated Edison (NYSE:ED) and Iren (OTCMKTS:IRDEY) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Consolidated Edison and Iren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consolidated Edison	12.53%	8.44%	2.83%
Iren	N/A	N/A	N/A

Dividends

Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.3%. Iren pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. Consolidated Edison pays out 58.3% of its earnings in the form of a dividend. Iren pays out 62.8% 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. Consolidated Edison has increased its dividend for 52 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for Consolidated Edison and Iren, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consolidated Edison	6	6	3	0	1.80
Iren	0	0	0	0	0.00

Consolidated Edison presently has a consensus price target of $108.93, indicating a potential upside of 1.12%. Given Consolidated Edison’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Consolidated Edison is more favorable than Iren.

Valuation and Earnings

This table compares Consolidated Edison and Iren”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consolidated Edison	$16.92 billion	2.35	$2.02 billion	$6.09	17.69
Iren	N/A	N/A	N/A	$0.61	47.49

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

Institutional & Insider Ownership

66.3% of Consolidated Edison shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Consolidated Edison beats Iren on 13 of the 14 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

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.