Analyzing NiSource (NYSE:NI) and A2A (OTCMKTS:AEMMY)

NiSource (NYSE:NI) and A2A (OTCMKTS:AEMMY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Valuation & Earnings

This table compares NiSource and A2A”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NiSource	$6.88 billion	2.91	$929.50 million	$1.88	22.18
A2A	N/A	N/A	N/A	N/A	N/A

NiSource has higher revenue and earnings than A2A.

Profitability

This table compares NiSource and A2A’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NiSource	13.20%	7.95%	2.57%
A2A	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for NiSource and A2A, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NiSource	0	2	10	0	2.83
A2A	0	0	0	0	0.00

NiSource currently has a consensus target price of $49.82, indicating a potential upside of 19.50%. Given NiSource’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NiSource is more favorable than A2A.

Institutional & Insider Ownership

91.6% of NiSource shares are owned by institutional investors. 0.4% of NiSource shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

NiSource beats A2A on 9 of the 9 factors compared between the two stocks.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.

About A2A

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.