NiSource (NYSE:NI – Get Free Report) and Chubu Electric Power (OTCMKTS:CHUEF – Get Free Report) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
91.6% of NiSource shares are held by institutional investors. Comparatively, 9.6% of Chubu Electric Power shares are held by institutional investors. 0.4% of NiSource shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares NiSource and Chubu Electric Power’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% |
| Chubu Electric Power | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NiSource | 0 | 2 | 10 | 0 | 2.83 |
| Chubu Electric Power | 0 | 0 | 0 | 0 | 0.00 |
NiSource presently has a consensus target price of $49.64, suggesting a potential upside of 21.24%. Given NiSource’s stronger consensus rating and higher probable upside, research analysts plainly believe NiSource is more favorable than Chubu Electric Power.
Valuation & Earnings
This table compares NiSource and Chubu Electric Power”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NiSource | $6.88 billion | 2.85 | $929.50 million | $1.88 | 21.78 |
| Chubu Electric Power | N/A | N/A | N/A | ($3.17) | -5.31 |
NiSource has higher revenue and earnings than Chubu Electric Power. Chubu Electric Power is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.
Summary
NiSource beats Chubu Electric Power on 11 of the 11 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 Chubu Electric Power
Chubu Electric Power Company, Incorporated, together with its subsidiaries, engages in the generation, transmission, distribution, and retail of electricity in Japan and internationally. The company operates through three segments: JERA, Power Grid, and Miraiz. It generates electricity through geothermal, nuclear, hydroelectric, wind, biomass, and solar sources. The company is also involved in the fuel upstream, power generation procurement, and wholesale of electricity and gas businesses; and provides power network services. In addition, it engages in the construction for the development and maintenance of electric utilities-related facilities; and manufacture of materials and machinery for electric utilities-related facilities. Further, the company is involved in the gas supply and real estate activities, as well as life-related business about medical and health. Chubu Electric Power Company, Incorporated was founded in 1889 and is headquartered in Nagoya, Japan.
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