Central Puerto (NYSE:CEPU) versus Northland Power (OTCMKTS:NPIFF) Critical Survey

Northland Power (OTCMKTS:NPIFF) and Central Puerto (NYSE:CEPU) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares Northland Power and Central Puerto”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northland Power	$1.74 billion	2.39	-$116.84 million	($0.41)	-38.85
Central Puerto	$782.60 million	2.40	$277.08 million	$3.00	4.13

Central Puerto has lower revenue, but higher earnings than Northland Power. Northland Power is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northland Power and Central Puerto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northland Power	0	3	4	0	2.57
Central Puerto	0	1	2	0	2.67

Central Puerto has a consensus target price of $22.75, indicating a potential upside of 83.42%. Given Central Puerto’s stronger consensus rating and higher probable upside, analysts plainly believe Central Puerto is more favorable than Northland Power.

Profitability

This table compares Northland Power and Central Puerto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northland Power	-5.60%	10.29%	3.31%
Central Puerto	29.58%	16.32%	10.91%

Insider & Institutional Ownership

3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by company 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.

Risk & Volatility

Northland Power has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Central Puerto has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Dividends

Northland Power pays an annual dividend of $0.52 per share and has a dividend yield of 3.3%. Central Puerto pays an annual dividend of $0.90 per share and has a dividend yield of 7.3%. Northland Power pays out -126.8% of its earnings in the form of a dividend. Central Puerto pays out 30.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Central Puerto beats Northland Power on 13 of the 16 factors compared between the two stocks.

About Northland Power

Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in Canada, Netherlands, Germany, Spain, Colombia, and internationally. The company produces electricity from renewable resources, such as wind and solar, as well as natural gas for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest 3.4 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.