Reviewing Power Assets (OTCMKTS:HGKGY) & NorthWestern (NASDAQ:NWE)

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

Profitability

This table compares NorthWestern and Power Assets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NorthWestern	10.13%	8.03%	2.75%
Power Assets	N/A	N/A	N/A

Volatility & Risk

NorthWestern has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Dividends

NorthWestern pays an annual dividend of $2.68 per share and has a dividend yield of 3.8%. Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 6.6%. NorthWestern pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthWestern has raised its dividend for 21 consecutive years.

Valuation & Earnings

This table compares NorthWestern and Power Assets”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	2.66	$181.09 million	$2.72	25.64
Power Assets	$98.89 million	156.02	$800.08 million	N/A	N/A

Power Assets has lower revenue, but higher earnings than NorthWestern.

Insider and Institutional Ownership

96.1% of NorthWestern shares are held by institutional investors. 0.9% of NorthWestern shares are held by company insiders. Comparatively, 1.0% of Power Assets shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for NorthWestern and Power Assets, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NorthWestern	1	2	3	0	2.33
Power Assets	0	0	0	0	0.00

NorthWestern presently has a consensus price target of $70.10, indicating a potential upside of 0.53%. Given NorthWestern’s stronger consensus rating and higher probable upside, equities analysts clearly believe NorthWestern is more favorable than Power Assets.

Summary

NorthWestern beats Power Assets on 10 of the 15 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 Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.