Brookfield Infrastructure Partners (NYSE: BIP) and Westar Energy (NYSE:WR) are both mid-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitabiliy.

Insider & Institutional Ownership

34.6% of Brookfield Infrastructure Partners shares are held by institutional investors. Comparatively, 75.0% of Westar Energy shares are held by institutional investors. 0.6% of Westar Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Brookfield Infrastructure Partners and Westar Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Infrastructure Partners 0 1 8 0 2.89
Westar Energy 0 0 0 0 N/A

Brookfield Infrastructure Partners presently has a consensus price target of $45.37, indicating a potential upside of 10.90%. Given Brookfield Infrastructure Partners’ higher probable upside, analysts plainly believe Brookfield Infrastructure Partners is more favorable than Westar Energy.

Profitability

This table compares Brookfield Infrastructure Partners and Westar Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Infrastructure Partners 17.78% 4.77% 1.94%
Westar Energy 13.28% 8.96% 3.01%

Volatility & Risk

Brookfield Infrastructure Partners has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Westar Energy has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Earnings & Valuation

This table compares Brookfield Infrastructure Partners and Westar Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Infrastructure Partners $2.32 billion 4.58 $933.00 million $0.92 44.31
Westar Energy $2.57 billion 2.94 $1.05 billion $2.39 22.22

Westar Energy has higher revenue and earnings than Brookfield Infrastructure Partners. Westar Energy is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Brookfield Infrastructure Partners pays an annual dividend of $1.74 per share and has a dividend yield of 4.3%. Westar Energy pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. Brookfield Infrastructure Partners pays out 188.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westar Energy pays out 66.9% of its earnings in the form of a dividend. Brookfield Infrastructure Partners has raised its dividend for 7 consecutive years and Westar Energy has raised its dividend for 11 consecutive years.

Summary

Westar Energy beats Brookfield Infrastructure Partners on 9 of the 16 factors compared between the two stocks.

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, energy and communications infrastructure businesses in North and South America, Europe and Asia Pacific. The Company’s segments include utilities, transport, energy, communications infrastructure and other. The utilities segment consists of regulated businesses, including regulated distribution (electricity and natural gas connections), electricity transmission and a regulated terminal (coal export terminal). The transport segment consists of open access systems that provide transportation, storage and handling services for freight, bulk commodities and passengers. The Company’s energy segment consists of systems that provide transportation, storage and distribution services. The Company’s communications infrastructure segment provides services and infrastructure to the media broadcasting and telecommunication sectors.

About Westar Energy

Westar Energy, Inc. is an electric utility. The Company provides electric generation, transmission and distribution services. The Company provides these services in central and northeastern Kansas, including the cities of Topeka, Lawrence, Manhattan, Salina and Hutchinson. Its subsidiary, Kansas Gas and Electric Company (KGE), provides these services in south-central and southeastern Kansas, including the city of Wichita. Both the Company and KGE conduct business using the name Westar Energy. The Company supplies electric energy at retail to customers in Kansas. The Company also supplies electric energy at wholesale to municipalities and electric cooperatives in Kansas, and has contracts for the sale or purchase of wholesale electricity with other utilities. As of December 31, 2016, it had 6,292 megawatts (MW) of generating capacity in service.

Receive News & Ratings for Brookfield Infrastructure Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brookfield Infrastructure Partners LP and related companies with MarketBeat.com's FREE daily email newsletter.