Head-To-Head Comparison: Brookfield Infrastructure (NYSE:BIPC) and Algonquin Power & Utilities (NYSE:AQN)

Algonquin Power & Utilities (NYSE:AQN) and Brookfield Infrastructure (NYSE:BIPC) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Profitability

This table compares Algonquin Power & Utilities and Brookfield Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algonquin Power & Utilities	5.77%	5.16%	1.79%
Brookfield Infrastructure	N/A	N/A	N/A

Earnings & Valuation

This table compares Algonquin Power & Utilities and Brookfield Infrastructure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algonquin Power & Utilities	$2.43 billion	1.80	$180.80 million	$0.19	29.92
Brookfield Infrastructure	$3.70 billion	1.30	N/A	N/A	N/A

Algonquin Power & Utilities has higher earnings, but lower revenue than Brookfield Infrastructure.

Volatility and Risk

Algonquin Power & Utilities has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Brookfield Infrastructure has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Dividends

Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.6%. Brookfield Infrastructure pays an annual dividend of $1.82 per share and has a dividend yield of 4.6%. Algonquin Power & Utilities pays out 136.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure has raised its dividend for 5 consecutive years. Brookfield Infrastructure 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 ratings and recommmendations for Algonquin Power & Utilities and Brookfield Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algonquin Power & Utilities	0	5	6	0	2.55
Brookfield Infrastructure	2	0	0	0	1.00

Algonquin Power & Utilities currently has a consensus price target of $6.81, indicating a potential upside of 19.71%. Brookfield Infrastructure has a consensus price target of $50.00, indicating a potential upside of 27.68%. Given Brookfield Infrastructure’s higher possible upside, analysts plainly believe Brookfield Infrastructure is more favorable than Algonquin Power & Utilities.

Insider & Institutional Ownership

62.3% of Algonquin Power & Utilities shares are owned by institutional investors. Comparatively, 70.4% of Brookfield Infrastructure shares are owned by institutional investors. 0.1% of Algonquin Power & Utilities shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Brookfield Infrastructure beats Algonquin Power & Utilities on 8 of the 15 factors compared between the two stocks.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.

About Brookfield Infrastructure

Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.