Analyzing CK Infrastructure (OTCMKTS:CKISY) and Fortis (NYSE:FTS)

Fortis (NYSE:FTS) and CK Infrastructure (OTCMKTS:CKISY) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Fortis and CK Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortis	0	6	3	0	2.33
CK Infrastructure	0	0	0	0	0.00

Fortis presently has a consensus price target of $66.33, indicating a potential upside of 18.15%. Given Fortis’ stronger consensus rating and higher possible upside, research analysts plainly believe Fortis is more favorable than CK Infrastructure.

Profitability

This table compares Fortis and CK Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortis	14.17%	7.16%	2.34%
CK Infrastructure	N/A	N/A	N/A

Earnings & Valuation

This table compares Fortis and CK Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortis	$8.71 billion	3.29	$1.29 billion	$2.47	22.73
CK Infrastructure	N/A	N/A	N/A	$62.69	0.66

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

Insider and Institutional Ownership

57.8% of Fortis shares are owned by institutional investors. 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.

Summary

Fortis beats CK Infrastructure on 9 of the 10 factors compared between the two stocks.

About Fortis

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,087,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 69,000 customers in Ontario; approximately 275,000 customers in Newfoundland and Labrador; approximately 34,000 customers on Grand Cayman, Cayman Islands; and approximately 17,000 customers on certain islands in Turks and Caicos. It also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 90,500 circuit Kilometers (km) of distribution lines; and approximately 51,600 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.

About CK Infrastructure

CK Infrastructure Holdings Limited, an infrastructure company, develops, invests in, operates, and commercializes infrastructure businesses in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, Canada, and the United States. The company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, waste-to-energy, household infrastructure, and infrastructure related businesses. It is also involved in the production and laying of asphalt; manufacture, distribution, and sale of cement; and property investment and project management activities. The company was formerly known as Cheung Kong Infrastructure Holdings Limited and changed its name to CK Infrastructure Holdings Limited in May 2017. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. CK Infrastructure Holdings Limited is a subsidiary of CK Hutchison Holdings Limited.