PPL (NYSE:PPL – Get Free Report) and Altus Power (NYSE:AMPS – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
77.0% of PPL shares are held by institutional investors. Comparatively, 46.6% of Altus Power shares are held by institutional investors. 0.2% of PPL shares are held by insiders. Comparatively, 24.3% of Altus Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
PPL has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Altus Power has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
PPL | 0 | 4 | 6 | 0 | 2.60 |
Altus Power | 0 | 2 | 5 | 2 | 3.00 |
PPL currently has a consensus price target of $33.18, suggesting a potential upside of 2.22%. Altus Power has a consensus price target of $6.00, suggesting a potential upside of 78.57%. Given Altus Power’s stronger consensus rating and higher possible upside, analysts plainly believe Altus Power is more favorable than PPL.
Profitability
This table compares PPL and Altus Power’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
PPL | 10.17% | 9.26% | 3.30% |
Altus Power | 13.55% | 2.52% | 0.63% |
Earnings and Valuation
This table compares PPL and Altus Power”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
PPL | $8.26 billion | 2.90 | $740.00 million | $1.03 | 31.51 |
Altus Power | $155.16 million | 3.48 | -$9.35 million | ($0.05) | -67.19 |
PPL has higher revenue and earnings than Altus Power. Altus Power is trading at a lower price-to-earnings ratio than PPL, indicating that it is currently the more affordable of the two stocks.
Summary
PPL beats Altus Power on 8 of the 15 factors compared between the two stocks.
About PPL
PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.
About Altus Power
Altus Power, Inc., a clean electrification company, develops, owns, constructs, and operates roof, ground, and carport-based photovoltaic solar energy generation and storage systems. It serves commercial, industrial, public sector, and community solar customers. Altus Power, Inc. was founded in 2013 and is headquartered in Stamford, Connecticut.
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