Comparing FirstEnergy (NYSE:FE) & United Utilities Group (OTCMKTS:UUGRY)

FirstEnergy (NYSE:FE) and United Utilities Group (OTCMKTS:UUGRY) are both large-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for FirstEnergy and United Utilities Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstEnergy	0	6	7	0	2.54
United Utilities Group	0	4	3	1	2.62

FirstEnergy currently has a consensus price target of $52.83, suggesting a potential upside of 10.53%. Given FirstEnergy’s higher probable upside, equities analysts plainly believe FirstEnergy is more favorable than United Utilities Group.

Profitability

This table compares FirstEnergy and United Utilities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstEnergy	6.86%	10.51%	2.62%
United Utilities Group	N/A	N/A	N/A

Insider and Institutional Ownership

89.4% of FirstEnergy shares are held by institutional investors. 0.1% of FirstEnergy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares FirstEnergy and United Utilities Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstEnergy	$15.09 billion	1.83	$1.02 billion	$1.88	25.43
United Utilities Group	$3.51 billion	4.06	$786.53 million	N/A	N/A

FirstEnergy has higher revenue and earnings than United Utilities Group.

Volatility & Risk

FirstEnergy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, United Utilities Group has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Dividends

FirstEnergy pays an annual dividend of $1.86 per share and has a dividend yield of 3.9%. United Utilities Group pays an annual dividend of $1.76 per share and has a dividend yield of 4.6%. FirstEnergy pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FirstEnergy has raised its dividend for 3 consecutive years.

Summary

FirstEnergy beats United Utilities Group on 10 of the 16 factors compared between the two stocks.

About FirstEnergy

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

About United Utilities Group

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.