Suez (OTCMKTS:SZEVY) & Severn Trent (OTCMKTS:STRNY) Head-To-Head Analysis

Suez (OTCMKTS:SZEVY) and Severn Trent (OTCMKTS:STRNY) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for Suez and Severn Trent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suez	0	0	0	0	0.00
Severn Trent	0	6	1	0	2.14

Dividends

Suez pays an annual dividend of $0.17 per share and has a dividend yield of 2.6%. Severn Trent pays an annual dividend of $1.92 per share and has a dividend yield of 4.5%. Suez pays out 53.1% of its earnings in the form of a dividend. Severn Trent pays out 234.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Suez and Severn Trent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suez	N/A	N/A	N/A
Severn Trent	N/A	N/A	N/A

Insider and Institutional Ownership

0.1% of Suez shares are held by institutional investors. Comparatively, 0.1% of Severn Trent shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Suez and Severn Trent”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suez	$20.18 billion	0.40	$393.90 million	$0.32	20.30
Severn Trent	N/A	N/A	N/A	$0.82	52.49

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

Summary

Severn Trent beats Suez on 5 of the 8 factors compared between the two stocks.

About Suez

Suez SA, together with its subsidiaries, engages in the water and waste cycle management business in France, Europe, and internationally. The company operates through five segments: Water Europe, Recycling and Recovery Europe, International, Water Technologies & Solutions, and Other. It provides water distribution and treatment services to individuals, local authorities, and industrial clients; and waste collection and treatment services, including collection, sorting, recycling, composting, energy recovery, and landfilling for non-hazardous and hazardous waste for local authorities and industrial clients. The company also offers water network management services; technical assistance, operation, cleaning, and maintenance services; and spare parts, refurbishment, and associated services, as well as designs and operates storage facilities for hazardous and non-hazardous residual waste. In addition, it provides resource management consulting services; engineering and construction contracts and other services; and digital technology solutions for resource and asset protection, as well as deconstructs industrial sites in the end-of-life phase and decontaminates soil and water tables. Additionally, the company generates waste wood biomass energy, as well as engages in plastic recycling activities. It serves food and beverage, chemical and pharmaceutical, construction, mining and metal, oil and gas, power, pulp and paper, electronic and electronic products, leisure, and healthcare industries, as well as automotive, transport, and aeronautic sectors. Suez SA was founded in 1858 and is headquartered in Paris, France.

About Severn Trent

Severn Trent PLC operates as a water and sewerage company in England and Wales. It operates through two segments: Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment offers water and waste water services to approximately 4.8 million households and businesses. The Business Services segment generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar panels; property development; and offers affinity products and search services. It also provides services to municipal and industrial clients, including the Ministry of Defence and the Coal Authority for design, build, and operation of water and wastewater treatment facilities and networks. Severn Trent PLC was founded in 1974 and is headquartered in Coventry, the United Kingdom.