SSE PLC/S (OTCMKTS:SSEZY) and Avangrid (OTCMKTS:AGR) Head to Head Analysis

SSE PLC/S (OTCMKTS:SSEZY) and Avangrid (NYSE:AGR) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares SSE PLC/S and Avangrid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SSE PLC/S N/A N/A N/A
Avangrid 8.80% 4.27% 2.06%

Analyst Ratings

This is a breakdown of current ratings and price targets for SSE PLC/S and Avangrid, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SSE PLC/S 0 2 3 0 2.60
Avangrid 3 5 1 0 1.78

Avangrid has a consensus target price of $51.43, indicating a potential upside of 1.24%. Given Avangrid’s higher possible upside, analysts plainly believe Avangrid is more favorable than SSE PLC/S.

Institutional & Insider Ownership

0.1% of SSE PLC/S shares are owned by institutional investors. Comparatively, 14.4% of Avangrid shares are owned by institutional investors. 0.4% of Avangrid shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

SSE PLC/S has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Dividends

SSE PLC/S pays an annual dividend of $0.74 per share and has a dividend yield of 5.1%. Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. SSE PLC/S pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid has raised its dividend for 2 consecutive years.

Earnings & Valuation

This table compares SSE PLC/S and Avangrid’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SSE PLC/S $9.55 billion 1.53 $1.85 billion $0.87 16.55
Avangrid $6.48 billion 2.42 $595.00 million $2.21 22.99

SSE PLC/S has higher revenue and earnings than Avangrid. SSE PLC/S is trading at a lower price-to-earnings ratio than Avangrid, indicating that it is currently the more affordable of the two stocks.

Summary

Avangrid beats SSE PLC/S on 11 of the 17 factors compared between the two stocks.

About SSE PLC/S

SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company operates through three segments: Wholesale, Networks, and Retail. It generates electricity from gas, oil, coal, water, and wind. The company transmits and distributes electricity to approximately 3.7 million homes and businesses across the north of the central belt of Scotland and also central southern England; owns and maintains 132 kilovolts (KV), 275kV, and 400kV electricity transmission network; and manages 130,000 kilometers of overhead lines and underground cables, 106,000 substations, and approximately 100 subsea cables. It also produces, stores, distributes, and supplies gas; and offers other energy-related services. In addition, it engages in electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provision of corporate and maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

About Avangrid

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

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