Equatorial Energia (OTCMKTS:EQUEY) & Hydro One (OTCMKTS:HRNNF) Financial Comparison

Equatorial Energia (OTCMKTS:EQUEY) and Hydro One (OTCMKTS:HRNNF) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

0.0% of Equatorial Energia shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Equatorial Energia and Hydro One, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equatorial Energia	0	0	0	0	0.00
Hydro One	0	5	1	0	2.17

Profitability

This table compares Equatorial Energia and Hydro One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equatorial Energia	N/A	N/A	N/A
Hydro One	14.74%	10.52%	3.47%

Dividends

Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.0%. Hydro One pays an annual dividend of $0.95 per share and has a dividend yield of 2.4%. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend. Hydro One pays out 126.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Equatorial Energia and Hydro One”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equatorial Energia	N/A	N/A	N/A	$0.25	31.07
Hydro One	$6.19 billion	3.86	$843.65 million	$0.75	53.09

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

Summary

Hydro One beats Equatorial Energia on 9 of the 11 factors compared between the two stocks.

About Equatorial Energia

Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 125,000 circuit kilometers primary low-voltage distribution lines. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.