Comparing Premier (OTCMKTS:PRHL) & Otter Tail (OTCMKTS:OTTR)

Premier (OTCMKTS:PRHL) and Otter Tail (NASDAQ:OTTR) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Premier and Otter Tail, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 0 0 0 0 N/A
Otter Tail 0 0 1 0 3.00

Otter Tail has a consensus target price of $60.00, indicating a potential upside of 9.25%. Given Otter Tail’s higher probable upside, analysts clearly believe Otter Tail is more favorable than Premier.

Valuation & Earnings

This table compares Premier and Otter Tail’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Premier $2.70 million 0.39 -$10.52 million N/A N/A
Otter Tail $916.45 million 2.38 $82.35 million $2.06 26.66

Otter Tail has higher revenue and earnings than Premier.

Profitability

This table compares Premier and Otter Tail’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Premier N/A N/A N/A
Otter Tail 8.57% 10.78% 3.82%

Risk and Volatility

Premier has a beta of 3.01, suggesting that its stock price is 201% more volatile than the S&P 500. Comparatively, Otter Tail has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Institutional & Insider Ownership

44.0% of Otter Tail shares are owned by institutional investors. 39.3% of Premier shares are owned by company insiders. Comparatively, 1.7% of Otter Tail shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Otter Tail pays an annual dividend of $1.40 per share and has a dividend yield of 2.5%. Premier does not pay a dividend. Otter Tail pays out 68.0% of its earnings in the form of a dividend.

Summary

Otter Tail beats Premier on 10 of the 13 factors compared between the two stocks.

Premier Company Profile

Premier Holding Corporation, through its subsidiaries, provides energy services in the United States. It offers various electricity plans and upgrades to a facility's energy infrastructure to commercial middle market companies and residential customers. The company also provides deregulated power brokerage services for small businesses, warehouses, and distribution centers. The company was formerly known as OVM International Holding Corporation and changed its name to Premier Holding Corporation in November 2008. Premier Holding Corporation was founded in 1971 and is based in Tustin, California.

Otter Tail Company Profile

Otter Tail Corporation, together with its subsidiaries, engages in electric, manufacturing, and plastics businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas and oil sources. It serves approximately 130,000 residential, commercial, industrial, and other customers. Otter Tail Corporation's Manufacturing segment stamps, fabricates, welds, paints, and laser cuts metal components for use in the recreational vehicle, agricultural, oil and gas, lawn and garden, industrial equipment, health and fitness, and enclosure industries; manufactures and fabricates parts for off-road equipment, mining machinery, oil fields and offshore oil rigs, wind industry components, broadcast antennae, and farm equipment; and provides laser cutting services and stamping to weldments and assemblies for metal fabrication buyers and original equipment manufacturers. It also manufactures and sells thermoformed products for the horticulture industry; and clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the medical and life sciences, industrial, recreation, and electronics industries. The company's Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage system, and other uses. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

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