Critical Comparison: Light (OTCMKTS:LGSXY) versus XPLR Infrastructure (NYSE:XIFR)

XPLR Infrastructure (NYSE:XIFR) and Light (OTCMKTS:LGSXY) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Dividends

XPLR Infrastructure pays an annual dividend of $3.67 per share and has a dividend yield of 31.5%. Light pays an annual dividend of $1.41 per share and has a dividend yield of 123.0%. XPLR Infrastructure pays out 564.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Light pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Light is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares XPLR Infrastructure and Light”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPLR Infrastructure	$1.20 billion	0.91	-$28.00 million	$0.65	17.94
Light	N/A	N/A	N/A	$1.33	0.86

Light has lower revenue, but higher earnings than XPLR Infrastructure. Light is trading at a lower price-to-earnings ratio than XPLR Infrastructure, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for XPLR Infrastructure and Light, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPLR Infrastructure	2	3	2	1	2.25
Light	0	0	0	0	0.00

XPLR Infrastructure currently has a consensus price target of $12.50, indicating a potential upside of 7.20%. Given XPLR Infrastructure’s stronger consensus rating and higher possible upside, research analysts plainly believe XPLR Infrastructure is more favorable than Light.

Profitability

This table compares XPLR Infrastructure and Light’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPLR Infrastructure	5.24%	0.61%	0.34%
Light	N/A	N/A	N/A

Institutional and Insider Ownership

66.0% of XPLR Infrastructure shares are owned by institutional investors. Comparatively, 0.0% of Light shares are owned by institutional investors. 0.4% of XPLR Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

XPLR Infrastructure beats Light on 11 of the 14 factors compared between the two stocks.

About XPLR Infrastructure

XPLR Infrastructure LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.

About Light

Light S.A., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electric power in Brazil. The company distributes electricity in the state of Rio de Janeiro. It also engages in the research, planning, building, operation, and exploration of generation and transmission systems; purchase, sale, import, and export of electric and thermal power, and gas and industrial utilities; provision of consulting services in the energy sector; lease of real estate and personal properties; acquisition and sale of goods related to the studies and projects; implementation, operation, and maintenance of construction works and facilities; and trading activities. In addition, it provides services to low voltage clients, including the assembly, renovation, and maintenance of facilities. The company primarily serves residential, commercial, and industrial customers. Light S.A. was founded in 1899 and is based in Rio de Janeiro, Brazil.