CENTRICA PLC/S (OTCMKTS:CPYYY) and Fortis (NYSE:FTS) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Dividends
CENTRICA PLC/S pays an annual dividend of $0.14 per share and has a dividend yield of 3.1%. Fortis pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. CENTRICA PLC/S pays out 23.7% of its earnings in the form of a dividend. Fortis pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fortis has increased its dividend for 3 consecutive years. Fortis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares CENTRICA PLC/S and Fortis’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CENTRICA PLC/S | $39.62 billion | 0.16 | $244.27 million | $0.59 | 7.76 |
| Fortis | $6.44 billion | 3.17 | $899.56 million | $1.91 | 23.04 |
Fortis has lower revenue, but higher earnings than CENTRICA PLC/S. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than Fortis, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CENTRICA PLC/S and Fortis, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CENTRICA PLC/S | 1 | 7 | 3 | 0 | 2.18 |
| Fortis | 1 | 5 | 5 | 0 | 2.36 |
Fortis has a consensus target price of $57.29, indicating a potential upside of 30.19%. Given Fortis’ stronger consensus rating and higher probable upside, analysts clearly believe Fortis is more favorable than CENTRICA PLC/S.
Institutional & Insider Ownership
0.2% of CENTRICA PLC/S shares are owned by institutional investors. Comparatively, 49.3% of Fortis shares are owned by institutional investors. 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.
Volatility & Risk
CENTRICA PLC/S has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Fortis has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.
Profitability
This table compares CENTRICA PLC/S and Fortis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CENTRICA PLC/S | N/A | N/A | N/A |
| Fortis | 12.72% | 6.75% | 2.19% |
Summary
Fortis beats CENTRICA PLC/S on 13 of the 16 factors compared between the two stocks.
About CENTRICA PLC/S
Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Exploration & Production segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.
About Fortis
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 425,000 retail customers in southeastern Arizona; and 97,000 retail customers in Arizona’s Mohave and Santa Cruz counties with an aggregate capacity of 3,377 MW (MW), including 57 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 1,030,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 564,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 268,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 81,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 176,000 customers in British Columbia; approximately 268,000 customers in Newfoundland and Labrador; approximately 30,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and the Aitken Creek natural gas storage facility. It also owns and operates transmission and distribution lines; and natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John’s, Canada.
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