Reviewing Centuri (NYSE:CTRI) and Ameren (NYSE:AEE)

Ameren (NYSE:AEE) and Centuri (NYSE:CTRI) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Ameren and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameren	17.17%	10.94%	2.99%
Centuri	0.98%	5.64%	1.81%

Risk and Volatility

Ameren has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Centuri has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ameren and Centuri”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameren	$8.80 billion	3.66	$1.46 billion	$5.56	20.93
Centuri	$2.98 billion	0.89	$22.40 million	$0.34	77.50

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

Analyst Ratings

This is a breakdown of recent ratings for Ameren and Centuri, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameren	0	4	9	0	2.69
Centuri	2	1	2	0	2.00

Ameren currently has a consensus target price of $119.42, indicating a potential upside of 2.61%. Centuri has a consensus target price of $37.80, indicating a potential upside of 43.45%. Given Centuri’s higher probable upside, analysts plainly believe Centuri is more favorable than Ameren.

Insider and Institutional Ownership

79.1% of Ameren shares are held by institutional investors. 0.3% of Ameren shares are held by insiders. Comparatively, 0.3% of Centuri shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Ameren beats Centuri on 10 of the 14 factors compared between the two stocks.

About Ameren

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.