SSE (OTC:SSEZF) vs. IREN (NASDAQ:IREN) Financial Analysis

SSE (OTC:SSEZF) and IREN (NASDAQ:IREN) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares SSE and IREN”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SSE	N/A	N/A	N/A	$0.21	109.32
IREN	$501.02 million	25.13	$86.94 million	$0.59	78.46

IREN has higher revenue and earnings than SSE. IREN is trading at a lower price-to-earnings ratio than SSE, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SSE and IREN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SSE	0	0	0	0	0.00
IREN	0	3	12	0	2.80

IREN has a consensus price target of $42.42, suggesting a potential downside of 8.37%. Given IREN’s stronger consensus rating and higher probable upside, analysts clearly believe IREN is more favorable than SSE.

Profitability

This table compares SSE and IREN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SSE	N/A	N/A	N/A
IREN	33.03%	1.34%	0.94%

Institutional & Insider Ownership

40.4% of SSE shares are held by institutional investors. Comparatively, 41.1% of IREN shares are held by institutional investors. 21.6% of IREN shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

IREN beats SSE on 10 of the 11 factors compared between the two stocks.

About SSE

SSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

About IREN

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.