Fortis (FTS) Competitors

Fortis (TSE:FTS) and Hydro One (TSE:H) are both large-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, media sentiment, dividends, institutional ownership, valuation and profitability.

Which has higher earnings and valuation, FTS or H?

Fortis has higher revenue and earnings than Hydro One. Fortis is trading at a lower price-to-earnings ratio than Hydro One, 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
Fortis	C$11.41B	2.80	C$1.66B	C$3.37	19.15
Hydro One	C$8.37B	3.51	C$1.14B	C$1.90	25.82

Which has more volatility and risk, FTS or H?

Fortis has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Hydro One has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Is FTS or H a better dividend stock?

Fortis pays an annual dividend of C$2.46 per share and has a dividend yield of 3.8%. Hydro One pays an annual dividend of C$1.26 per share and has a dividend yield of 2.6%. Fortis pays out 73.0% of its earnings in the form of a dividend. Hydro One pays out 66.4% 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.

Do institutionals and insiders hold more shares of FTS or H?

57.4% of Fortis shares are owned by institutional investors. Comparatively, 22.1% of Hydro One shares are owned by institutional investors. 0.0% of Fortis shares are owned by insiders. Comparatively, 47.1% of Hydro One shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Does the media prefer FTS or H?

In the previous week, Hydro One had 2 more articles in the media than Fortis. MarketBeat recorded 4 mentions for Hydro One and 2 mentions for Fortis. Fortis' average media sentiment score of 0.31 beat Hydro One's score of -0.13 indicating that Fortis is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Fortis	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Hydro One	0 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts rate FTS or H?

Fortis presently has a consensus price target of C$65.14, indicating a potential upside of 0.94%. Hydro One has a consensus price target of C$49.90, indicating a potential upside of 1.92%. Given Hydro One's stronger consensus rating and higher probable upside, analysts clearly believe Hydro One is more favorable than Fortis.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortis	2 Sell rating(s)	6 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.00
Hydro One	0 Sell rating(s)	8 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.11

Is FTS or H more profitable?

Fortis has a net margin of 14.53% compared to Hydro One's net margin of 13.59%. Hydro One's return on equity of 9.58% beat Fortis' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Fortis	14.53%	7.48%	3.09%
Hydro One	13.59%	9.58%	3.57%

Summary

Hydro One beats Fortis on 11 of the 19 factors compared between the two stocks.