Comparing Hydro One (HRNNF) and Its Rivals

Hydro One (OTCMKTS:HRNNF) is one of 105 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its rivals? We will compare Hydro One to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Profitability

This table compares Hydro One and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydro One	14.88%	11.02%	3.56%
Hydro One Competitors	13.77%	9.64%	3.17%

Valuation and Earnings

This table compares Hydro One and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hydro One	$6.47 billion	$958.32 million	23.32
Hydro One Competitors	$14.12 billion	$1.54 billion	20.37

Hydro One’s rivals have higher revenue and earnings than Hydro One. Hydro One is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

59.9% of shares of all “Electric Utilities” companies are held by institutional investors. 6.2% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Hydro One pays an annual dividend of $1.02 per share and has a dividend yield of 2.6%. Hydro One pays out 59.6% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.3% and pay out 65.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Hydro One and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	1	5	1	0	2.00
Hydro One Competitors	1391	6386	5333	137	2.32

As a group, “Electric Utilities” companies have a potential upside of 9.99%. Given Hydro One’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Hydro One has less favorable growth aspects than its rivals.

Summary

Hydro One rivals beat Hydro One on 9 of the 14 factors compared.

Hydro One Company Profile

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates approximately 30,000 circuit kilometers of high-voltage transmission lines and approximately 125,000 circuit kilometers primary low-voltage distribution lines. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.