Analyzing Centuri (NYSE:CTRI) and Ameren (NYSE:AEE)

Centuri (NYSE:CTRI) and Ameren (NYSE:AEE) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Centuri and Ameren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centuri	0.98%	5.64%	1.81%
Ameren	17.17%	10.94%	2.99%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centuri	$2.98 billion	1.01	$22.40 million	$0.34	87.63
Ameren	$8.80 billion	3.60	$1.46 billion	$5.56	20.60

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

Institutional and Insider Ownership

79.1% of Ameren shares are owned by institutional investors. 0.3% of Centuri shares are owned by company insiders. Comparatively, 0.3% of Ameren shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Centuri has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Ameren has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Centuri and Ameren, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centuri	2	1	2	0	2.00
Ameren	0	4	9	0	2.69

Centuri presently has a consensus price target of $37.80, indicating a potential upside of 26.87%. Ameren has a consensus price target of $119.42, indicating a potential upside of 4.28%. Given Centuri’s higher probable upside, research analysts clearly believe Centuri is more favorable than Ameren.

Summary

Ameren beats Centuri on 10 of the 14 factors compared between the two stocks.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.

About Ameren

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.