Financial Contrast: CLP (OTCMKTS:CLPHY) versus Pacific Gas & Electric (NYSE:PCG)

Pacific Gas & Electric (NYSE:PCG) and CLP (OTCMKTS:CLPHY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Pacific Gas & Electric and CLP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Gas & Electric	$24.42 billion	1.46	$2.51 billion	$1.19	13.67
CLP	$11.66 billion	2.10	$1.52 billion	N/A	N/A

Pacific Gas & Electric has higher revenue and earnings than CLP.

Insider and Institutional Ownership

78.6% of Pacific Gas & Electric shares are held by institutional investors. 0.1% of Pacific Gas & Electric shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Pacific Gas & Electric and CLP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Gas & Electric	1	6	7	0	2.43
CLP	0	0	0	0	0.00

Pacific Gas & Electric currently has a consensus price target of $20.55, suggesting a potential upside of 26.27%. Given Pacific Gas & Electric’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Pacific Gas & Electric is more favorable than CLP.

Dividends

Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. CLP pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Pacific Gas & Electric pays out 16.8% of its earnings in the form of a dividend. Pacific Gas & Electric has increased its dividend for 1 consecutive years.

Volatility and Risk

Pacific Gas & Electric has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, CLP has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Pacific Gas & Electric and CLP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Gas & Electric	10.93%	11.10%	2.42%
CLP	N/A	N/A	N/A

Summary

Pacific Gas & Electric beats CLP on 11 of the 15 factors compared between the two stocks.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.

About CLP

CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India Thailand, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.