Algonquin Power & Utilities (AQN) Competitors

Algonquin Power & Utilities (TSE:AQN) and TransAlta (TSE:TA) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, media sentiment, analyst recommendations, risk, dividends, institutional ownership and profitability.

Do institutionals and insiders believe in AQN or TA?

62.0% of Algonquin Power & Utilities shares are owned by institutional investors. Comparatively, 70.8% of TransAlta shares are owned by institutional investors. 0.1% of Algonquin Power & Utilities shares are owned by insiders. Comparatively, 0.2% of TransAlta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Which has better earnings and valuation, AQN or TA?

TransAlta has higher revenue and earnings than Algonquin Power & Utilities. Algonquin Power & Utilities is trading at a lower price-to-earnings ratio than TransAlta, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algonquin Power & Utilities	C$1.95B	2.25	-C$763.91M	-C$1.99	-4.05
TransAlta	C$2.83B	1.73	C$212.05M	C$0.70	23.23

Does the media refer more to AQN or TA?

In the previous week, TransAlta had 4 more articles in the media than Algonquin Power & Utilities. MarketBeat recorded 6 mentions for TransAlta and 2 mentions for Algonquin Power & Utilities. TransAlta's average media sentiment score of 0.38 beat Algonquin Power & Utilities' score of 0.37 indicating that TransAlta is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Algonquin Power & Utilities	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
TransAlta	0 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility and risk, AQN or TA?

Algonquin Power & Utilities has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, TransAlta has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Is AQN or TA a better dividend stock?

Algonquin Power & Utilities pays an annual dividend of C$0.36 per share and has a dividend yield of 4.5%. TransAlta pays an annual dividend of C$0.24 per share and has a dividend yield of 1.5%. Algonquin Power & Utilities pays out -18.1% of its earnings in the form of a dividend. TransAlta pays out 34.2% 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. Algonquin Power & Utilities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Is AQN or TA more profitable?

TransAlta has a net margin of 7.49% compared to Algonquin Power & Utilities' net margin of -39.22%. TransAlta's return on equity of 12.03% beat Algonquin Power & Utilities' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Algonquin Power & Utilities	-39.22%	-19.30%	1.59%
TransAlta	7.49%	12.03%	7.07%

Do analysts prefer AQN or TA?

Algonquin Power & Utilities currently has a consensus target price of C$6.63, suggesting a potential downside of 18.01%. TransAlta has a consensus target price of C$18.33, suggesting a potential upside of 12.47%. Given TransAlta's stronger consensus rating and higher probable upside, analysts plainly believe TransAlta is more favorable than Algonquin Power & Utilities.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algonquin Power & Utilities	0 Sell rating(s)	6 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
TransAlta	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.89

Summary

TransAlta beats Algonquin Power & Utilities on 16 of the 19 factors compared between the two stocks.