Head to Head Contrast: Huaneng Power International Inc ADR Class N (NYSE:HNP) & Black Hills (NYSE:BKH)

Huaneng Power International Inc ADR Class N (NYSE:HNP) and Black Hills (NYSE:BKH) are both mid-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Huaneng Power International Inc ADR Class N and Black Hills, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huaneng Power International Inc ADR Class N 1 3 1 0 2.00
Black Hills 0 2 6 0 2.75

Black Hills has a consensus target price of $72.71, suggesting a potential upside of 20.39%. Given Black Hills’ stronger consensus rating and higher probable upside, analysts clearly believe Black Hills is more favorable than Huaneng Power International Inc ADR Class N.

Dividends

Huaneng Power International Inc ADR Class N pays an annual dividend of $0.67 per share and has a dividend yield of 4.0%. Black Hills pays an annual dividend of $2.14 per share and has a dividend yield of 3.5%. Huaneng Power International Inc ADR Class N pays out 1,675.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Hills pays out 60.6% of its earnings in the form of a dividend. Black Hills has raised its dividend for 50 consecutive years.

Insider & Institutional Ownership

0.3% of Huaneng Power International Inc ADR Class N shares are owned by institutional investors. Comparatively, 85.7% of Black Hills shares are owned by institutional investors. 1.0% of Black Hills shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Huaneng Power International Inc ADR Class N and Black Hills’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huaneng Power International Inc ADR Class N 0.04% 0.05% 0.01%
Black Hills 11.27% 8.41% 2.83%

Earnings & Valuation

This table compares Huaneng Power International Inc ADR Class N and Black Hills’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huaneng Power International Inc ADR Class N $24.94 billion 0.26 $110.89 million $0.04 416.75
Black Hills $1.73 billion 2.18 $199.31 million $3.53 17.11

Black Hills has lower revenue, but higher earnings than Huaneng Power International Inc ADR Class N. Black Hills is trading at a lower price-to-earnings ratio than Huaneng Power International Inc ADR Class N, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Huaneng Power International Inc ADR Class N has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Summary

Black Hills beats Huaneng Power International Inc ADR Class N on 14 of the 17 factors compared between the two stocks.

About Huaneng Power International Inc ADR Class N

Huaneng Power International, Inc., through its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People's Republic of China and Singapore. It is involved in the development, investment, construction, operation, and management of power plants and related projects; and generation, wholesale, and retail of power and other relating utilities. The company generates power from coal, wind, gas, oil, biomass, solar, and hydro resources. It is also involved in the sale of coal ash and lime; provision of loading warehousing and conveying services; photovoltaic power generation projects development and construction; and provision of thermal energy and cold energy services, as well as thermal heating services. In addition, the company engages in the repair of power equipment; provision of water supply and transportation services; construction and operation of electricity distribution networks and heating pipe networks; power supply, energy transmission, and substation project contracting activities; cargo transportation along domestic coastal areas; port management, investment, and development activities; and port provision, and cargo loading and storage activities. Further, it is involved in the aquaculture and agriculture irrigation activities, as well as provides environment engineering, waste recycling consultancy, and industrial waste management and recycling services. Additionally, it sells raw and processed coal; and provides central heat, and plumbing and pipe installation services, as well as desalinated water. As of March 31, 2018, the company had controlled generating capacity of 104,301 megawatts and a total generating capacity of 91,783 megawatts. Huaneng Power International, Inc. was founded in 1994 and is headquartered in Beijing, the People's Republic of China.

About Black Hills

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates through Electric Utilities, Gas Utilities, Power Generation, and Mining segments. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 212,000 electric customers in Colorado, Montana, South Dakota, and Wyoming, as well as provides electrical system construction services to large industrial customers. This segment owns 939 megawatts of generation capacity and 8,858 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,054,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. It also provides appliance repair services to residential customers through company technicians and third-party service providers; and constructs and maintains gas infrastructure facilities for gas transportation customers. This segment owns and operates approximately 4,700 miles of intrastate gas transmission pipelines; 41,158 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The Power Generation segment produces electric power through wind, natural gas, and coal generating plants; and sells the electric capacity and energy primarily to utilities under long-term contracts. The Mining segment produces coal at its coal mine located near Gillette, Wyoming; and sells the coal to electric generation facilities. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.

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