Atlantic Power Corporation (NYSE: AT) and Atlantica Yield PLC (NASDAQ:ABY) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atlantic Power Corporation and Atlantica Yield PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic Power Corporation 0 3 0 0 2.00
Atlantica Yield PLC 0 1 2 1 3.00

Atlantic Power Corporation presently has a consensus price target of $2.63, suggesting a potential upside of 7.14%. Atlantica Yield PLC has a consensus price target of $22.33, suggesting a potential upside of 4.70%. Given Atlantic Power Corporation’s higher possible upside, analysts plainly believe Atlantic Power Corporation is more favorable than Atlantica Yield PLC.

Profitability

This table compares Atlantic Power Corporation and Atlantica Yield PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic Power Corporation -25.71% 27.03% 1.21%
Atlantica Yield PLC 10.03% 5.29% 1.10%

Institutional and Insider Ownership

46.4% of Atlantic Power Corporation shares are owned by institutional investors. Comparatively, 51.7% of Atlantica Yield PLC shares are owned by institutional investors. 1.6% of Atlantic Power Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Atlantica Yield PLC pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Atlantic Power Corporation does not pay a dividend. Atlantica Yield PLC pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Atlantic Power Corporation and Atlantica Yield PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atlantic Power Corporation $417.00 million 0.68 $179.50 million ($0.96) -2.55
Atlantica Yield PLC $1.00 billion 2.14 $697.25 million $0.30 71.10

Atlantica Yield PLC has higher revenue and earnings than Atlantic Power Corporation. Atlantic Power Corporation is trading at a lower price-to-earnings ratio than Atlantica Yield PLC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Atlantic Power Corporation has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Atlantica Yield PLC has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

Atlantica Yield PLC beats Atlantic Power Corporation on 10 of the 16 factors compared between the two stocks.

Atlantic Power Corporation Company Profile

Alltel Corporation provides telecommunication services such as wire line local, long-distance, network access and internet services, wireless communications and wide-area paging services. The Company also wholesales telecommunications equipment and publishes telephone directories.

Atlantica Yield PLC Company Profile

Atlantica Yield plc, formerly Abengoa Yield plc, is a total return company. The Company owns, manages, and acquires renewable energy, conventional power, electric transmission lines and water assets, focused on North America (the United States and Mexico), South America (Peru, Chile, Brazil and Uruguay) and Europe, Middle East and Africa (Spain, Algeria and South Africa). Its segments include North America, South America and EMEA. It operates in business sectors, including renewable energy, conventional power, electric transmission lines and water. As of December 31, 2016, it owned or had interests in 21 assets, comprising 1,442 megawatt (MW) of renewable energy generation, 300 MW of conventional power generation, 1,099 miles of electric transmission lines, as well as an exchangeable preferred equity investment in Abengoa Concessoes Brasil Holding S.A., (ACBH). The renewable energy sector includes its activities related to the production electricity from solar power and wind plants.

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