Financial Survey: CenterPoint Energy (NYSE:CNP) versus Iren (OTCMKTS:IRDEY)

Iren (OTCMKTS:IRDEY) and CenterPoint Energy (NYSE:CNP) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Dividends

Iren pays an annual dividend of $0.38 per share and has a dividend yield of 1.3%. CenterPoint Energy pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Iren pays out 62.8% of its earnings in the form of a dividend. CenterPoint Energy pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CenterPoint Energy has increased its dividend for 5 consecutive years. CenterPoint Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

91.8% of CenterPoint Energy shares are held by institutional investors. 0.2% of CenterPoint Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iren	N/A	N/A	N/A	$0.61	47.49
CenterPoint Energy	$9.36 billion	2.86	$1.05 billion	$1.70	23.91

CenterPoint Energy has higher revenue and earnings than Iren. CenterPoint Energy is trading at a lower price-to-earnings ratio than Iren, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Iren and CenterPoint Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iren	0	0	0	0	0.00
CenterPoint Energy	1	7	9	0	2.47

CenterPoint Energy has a consensus target price of $45.57, suggesting a potential upside of 12.12%. Given CenterPoint Energy’s stronger consensus rating and higher probable upside, analysts clearly believe CenterPoint Energy is more favorable than Iren.

Profitability

This table compares Iren and CenterPoint Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iren	N/A	N/A	N/A
CenterPoint Energy	11.61%	11.10%	2.68%

Summary

CenterPoint Energy beats Iren on 13 of the 14 factors compared between the two stocks.

About Iren

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents; 11,279 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 35 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 105 photovoltaic production plants with an installed capacity of 142 MW. Iren SpA is based in Reggio Emilia, Italy.

About CenterPoint Energy

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides maintenance and repair services of home appliances to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. It serves approximately 2,534,730 metered customers; owned 348 substations with transformer capacity of 79,719 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.