Head to Head Analysis: Caribbean Utilities (OTCMKTS:CUPUF) versus Exelon (NASDAQ:EXC)

Exelon (NASDAQ:EXC) and Caribbean Utilities (OTCMKTS:CUPUF) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 3.8%. Caribbean Utilities pays an annual dividend of $0.66 per share and has a dividend yield of 4.6%. Exelon pays out 61.5% of its earnings in the form of a dividend. Caribbean Utilities pays out 94.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Exelon and Caribbean Utilities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exelon	$24.26 billion	1.86	$2.77 billion	$2.73	16.01
Caribbean Utilities	N/A	N/A	N/A	$0.70	20.82

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

Profitability

This table compares Exelon and Caribbean Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exelon	10.99%	9.81%	2.43%
Caribbean Utilities	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Exelon and Caribbean Utilities, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exelon	1	13	4	0	2.17
Caribbean Utilities	0	0	0	0	0.00

Exelon presently has a consensus price target of $50.07, indicating a potential upside of 14.52%. Given Exelon’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Exelon is more favorable than Caribbean Utilities.

Institutional and Insider Ownership

80.9% of Exelon shares are held by institutional investors. Comparatively, 0.1% of Caribbean Utilities shares are held by institutional investors. 0.1% of Exelon shares are held by 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.

Summary

Exelon beats Caribbean Utilities on 12 of the 14 factors compared between the two stocks.

About Exelon

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.

About Caribbean Utilities

Caribbean Utilities Company, Ltd. engages in the generation, transmission, and distribution of electricity in Grand Cayman. The company generates electricity using diesel with 166 megawatts total installed capacity. It also operates nine transformer substations with approximately 436 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cables. The company also provides telecommunication services. The company was incorporated in 1966 and is headquartered in Grand Cayman, the Cayman Islands. Caribbean Utilities Company, Ltd. is a subsidiary of Fortis Energy (Bermuda) Ltd.