Comparing NorthWestern (NASDAQ:NWE) and Summer Energy (OTCMKTS:SUME)

NorthWestern (NASDAQ:NWE) and Summer Energy (OTCMKTS:SUME) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for NorthWestern and Summer Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NorthWestern	1	2	3	0	2.33
Summer Energy	0	0	0	0	0.00

NorthWestern currently has a consensus price target of $68.30, suggesting a potential downside of 5.68%. Given NorthWestern’s stronger consensus rating and higher possible upside, equities analysts plainly believe NorthWestern is more favorable than Summer Energy.

Profitability

This table compares NorthWestern and Summer Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NorthWestern	10.21%	7.80%	2.69%
Summer Energy	N/A	N/A	N/A

Valuation & Earnings

This table compares NorthWestern and Summer Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NorthWestern	$1.61 billion	2.77	$181.09 million	$2.72	26.62
Summer Energy	N/A	N/A	N/A	N/A	N/A

NorthWestern has higher revenue and earnings than Summer Energy.

Insider and Institutional Ownership

96.1% of NorthWestern shares are owned by institutional investors. 0.9% of NorthWestern shares are owned by insiders. Comparatively, 56.8% of Summer Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

NorthWestern has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Summer Energy has a beta of -157.31, meaning that its share price is 15,831% less volatile than the S&P 500.

Summary

NorthWestern beats Summer Energy on 9 of the 10 factors compared between the two stocks.

About NorthWestern

NorthWestern Energy Group, Inc. provides electricity and natural gas to residential, commercial, and various industrial customers. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,600 miles of electric transmission and 18,674 miles of electric distribution lines with approximately 395 transmission and distribution substations; and 2,235 miles of natural gas transmission and 5,155 miles of natural gas distribution lines with approximately 133 city gate stations in Montana. It also operates 1,310 miles of electric transmission and 2,365 miles of electric distribution lines in South Dakota with approximately 124 transmission and distribution substations; and 55 miles of natural gas transmission and 2,573 miles of natural gas distribution lines in South Dakota and Nebraska. The company provides electricity and/or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Energy Group, Inc. was founded in 1923 and is based in Sioux Falls, South Dakota.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.