Contrasting Power Assets (OTCMKTS:HGKGY) and Unitil (NYSE:UTL)

Power Assets (OTCMKTS:HGKGY) and Unitil (NYSE:UTL) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Power Assets and Unitil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Assets	N/A	N/A	N/A
Unitil	9.60%	9.89%	2.89%

Institutional & Insider Ownership

76.8% of Unitil shares are owned by institutional investors. 1.0% of Power Assets shares are owned by company insiders. Comparatively, 2.2% of Unitil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Power Assets and Unitil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Assets	$98.89 million	175.03	$800.08 million	N/A	N/A
Unitil	$582.10 million	1.58	$50.20 million	$3.16	16.18

Power Assets has higher earnings, but lower revenue than Unitil.

Analyst Ratings

This is a summary of current recommendations and price targets for Power Assets and Unitil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Assets	0	0	0	0	0.00
Unitil	0	5	0	0	2.00

Unitil has a consensus target price of $56.50, suggesting a potential upside of 10.49%. Given Unitil’s stronger consensus rating and higher probable upside, analysts clearly believe Unitil is more favorable than Power Assets.

Dividends

Power Assets pays an annual dividend of $0.32 per share and has a dividend yield of 3.9%. Unitil pays an annual dividend of $1.90 per share and has a dividend yield of 3.7%. Unitil pays out 60.1% of its earnings in the form of a dividend. Unitil has raised its dividend for 12 consecutive years.

Volatility and Risk

Power Assets has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Unitil has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Summary

Unitil beats Power Assets on 9 of the 13 factors compared between the two stocks.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

About Unitil

Unitil Corporation, a public utility holding company, engages in the distribution of electricity and natural gas. It operates through two segments, Utility Electric Operations, Utility Gas Operations. The company distributes electricity in the southeastern seacoast and state capital regions of New Hampshire, and the greater Fitchburg area of north central Massachusetts; and distributes natural gas in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland and the Lewiston-Auburn area, as well as electricity and natural gas in the greater Fitchburg area of north central Massachusetts. It also operates 86 miles of interstate underground natural gas transmission pipeline that provides interstate natural gas pipeline access and transportation services primarily in Maine and New Hampshire. In addition, the company provides real estate management services. It serves approximately 108,100 electric customers and 87,500 natural gas customers. Unitil Corporation was incorporated in 1984 and is headquartered in Hampton, New Hampshire.