Head-To-Head Survey: Central Puerto (NYSE:CEPU) and Centrica (OTCMKTS:CPYYY)

Centrica (OTCMKTS:CPYYY) and Central Puerto (NYSE:CEPU) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Risk and Volatility

Centrica has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Central Puerto has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Centrica and Central Puerto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centrica	0	1	2	2	3.20
Central Puerto	0	1	0	0	2.00

Central Puerto has a consensus price target of $12.00, suggesting a potential upside of 25.88%. Given Central Puerto’s higher probable upside, analysts clearly believe Central Puerto is more favorable than Centrica.

Dividends

Centrica pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. Central Puerto pays an annual dividend of $0.31 per share and has a dividend yield of 3.3%. Central Puerto pays out 134.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Centrica and Central Puerto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centrica	N/A	N/A	N/A
Central Puerto	56.44%	22.76%	14.97%

Institutional & Insider Ownership

3.0% of Central Puerto shares are owned by institutional investors. 0.1% of Central Puerto shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Centrica and Central Puerto”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centrica	$21.55 billion	0.42	$4.89 billion	N/A	N/A
Central Puerto	$738.17 billion	0.00	$562.57 million	$0.23	41.45

Centrica has higher earnings, but lower revenue than Central Puerto.

Summary

Central Puerto beats Centrica on 8 of the 15 factors compared between the two stocks.

About Centrica

Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Centrica Energy, and Upstream segments. It supplies gas and electricity to residential, commercial, industrial customers, and small businesses, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for central heating, ventilation, and air conditioning systems, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; development and operation of large-scale power assets; building of solar farm and connecting to grid; and supply of energy efficiency solutions and technologies. Further, the company produces and processes gas and oil; constructs, owns, and exploits infrastructure; offers central heating, boiler and controls, plumbing and drains, and electrical appliance insurance covers; and engages in the social enterprise investment fund activities. Additionally, it provides metering assets and services, vehicle leasing, and energy management products and services; constructs battery storage and gas peakers; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.