Comparing E.On (OTCMKTS:EONGY) and Power Assets (OTCMKTS:HGKGY)

E.On (OTCMKTS:EONGY) and Power Assets (OTCMKTS:HGKGY) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares E.On and Power Assets”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.On	$86.71 billion	0.55	$4.90 billion	$1.82	9.97
Power Assets	$117.77 million	121.33	$784.46 million	N/A	N/A

E.On has higher revenue and earnings than Power Assets.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
E.On	5.41%	13.05%	2.77%
Power Assets	N/A	N/A	N/A

Volatility and Risk

E.On has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Dividends

E.On pays an annual dividend of $0.46 per share and has a dividend yield of 2.5%. Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 7.2%. E.On pays out 25.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for E.On and Power Assets, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.On	0	5	2	1	2.50
Power Assets	0	0	0	0	0.00

Summary

E.On beats Power Assets on 9 of the 12 factors compared between the two stocks.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.

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.