Analyzing Iberdrola (OTCMKTS:IBDRY) and Power Assets (OTCMKTS:HGKGY)

Iberdrola (OTCMKTS:IBDRY) and Power Assets (OTCMKTS:HGKGY) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Iberdrola and Power Assets, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	1	3	2	1	2.43
Power Assets	0	0	0	0	0.00

Profitability

This table compares Iberdrola and Power Assets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	12.10%	8.99%	3.42%
Power Assets	N/A	N/A	N/A

Dividends

Iberdrola pays an annual dividend of $2.99 per share and has a dividend yield of 3.5%. Power Assets pays an annual dividend of $0.16 per share and has a dividend yield of 2.2%. Iberdrola pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Iberdrola has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Earnings and Valuation

This table compares Iberdrola and Power Assets”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$48.42 billion	2.94	$6.07 billion	$3.61	23.60
Power Assets	$117.77 million	133.18	$784.46 million	N/A	N/A

Iberdrola has higher revenue and earnings than Power Assets.

Institutional and Insider Ownership

0.0% of Iberdrola shares are held by institutional investors. 1.0% of Power Assets shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Iberdrola beats Power Assets on 11 of the 14 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.