Avangrid (NYSE:AGR) versus Principal Solar (OTCMKTS:PSWW) Critical Review

Avangrid (NYSE:AGR) and Principal Solar (OTCMKTS:PSWW) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Avangrid and Principal Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avangrid	12.89%	5.37%	2.46%
Principal Solar	N/A	N/A	N/A

Institutional and Insider Ownership

13.1% of Avangrid shares are owned by institutional investors. 0.1% of Avangrid shares are owned by insiders. Comparatively, 39.2% of Principal Solar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Avangrid and Principal Solar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avangrid	$8.31 billion	1.67	$786.00 million	$2.91	12.32
Principal Solar	N/A	N/A	N/A	N/A	N/A

Avangrid has higher revenue and earnings than Principal Solar.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Avangrid and Principal Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avangrid	1	2	0	0	1.67
Principal Solar	0	0	0	0	0.00

Avangrid presently has a consensus price target of $34.67, suggesting a potential downside of 3.30%. Given Avangrid’s stronger consensus rating and higher possible upside, equities analysts plainly believe Avangrid is more favorable than Principal Solar.

Risk & Volatility

Avangrid has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Principal Solar has a beta of 6.67, meaning that its stock price is 567% more volatile than the S&P 500.

Summary

Avangrid beats Principal Solar on 7 of the 9 factors compared between the two stocks.

About Avangrid

Avangrid, Inc., an energy services holding company, engages in the regulated energy transmission and distribution, and renewable energy generation businesses in the United States. The company operates through Networks and Renewables segments. It is involved in the generation, transmission, and distribution of electricity; and distribution, transportation, and sale of natural gas. In addition, the company operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. Further, it delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities, as well as generates and provides power and other services to federal and state agencies, institutional retail, and joint action agencies. Additionally, the company delivers thermal output to wholesale customers in the Western United States. It owns eight electric and natural gas utilities, serving 3.3 million customers in New York and New England, as well as owns and operates 9.3 gigawatts of electricity capacity primarily through wind power in 22 states. Avangrid, Inc. was incorporated in 1997 and is headquartered in Orange, Connecticut. The company operates as a subsidiary of Iberdrola, S.A.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.