Reviewing Central Puerto (NYSE:CEPU) & Kyushu Electric Power (OTCMKTS:KYSEY)

Kyushu Electric Power (OTCMKTS:KYSEY) and Central Puerto (NYSE:CEPU) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kyushu Electric Power and Central Puerto, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyushu Electric Power	0	1	0	0	2.00
Central Puerto	0	1	1	0	2.50

Central Puerto has a consensus price target of $17.50, suggesting a potential upside of 20.44%. Given Central Puerto’s stronger consensus rating and higher possible upside, analysts plainly believe Central Puerto is more favorable than Kyushu Electric Power.

Valuation and Earnings

This table compares Kyushu Electric Power and Central Puerto”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyushu Electric Power	N/A	N/A	N/A	($203.58)	-0.06
Central Puerto	$782.60 million	2.81	$277.08 million	$2.08	6.99

Central Puerto has higher revenue and earnings than Kyushu Electric Power. Kyushu Electric Power is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kyushu Electric Power and Central Puerto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyushu Electric Power	N/A	N/A	N/A
Central Puerto	37.86%	15.93%	11.06%

Summary

Central Puerto beats Kyushu Electric Power on 11 of the 11 factors compared between the two stocks.

About Kyushu Electric Power

Kyushu Electric Power Company, Incorporated engages in the power generation, transmission, distribution, and sales in Japan and internationally. The company operates through Power Generation and Sales Business, Transmission and Distribution Business, ICT Services Business, Urban Development Business, Overseas Businesses, and Other Energy Services Business segments. It generates hydroelectric, thermal, geothermal, nuclear, and other power energy facilities. In addition, the company constructs, maintains, and sells electrical equipment, gas/LNG, coal, and renewable energy related services. Further, it is involved in data communication, optical broadband, information system, and data center business, as well as constructs and maintains telecommunications related services. Additionally, the company engages in development of real estate and social infrastructure business. Kyushu Electric Power Company, Incorporated was incorporated in 1951 and is headquartered in Fukuoka City, Japan.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.