EDF (OTCMKTS: ECIFY) and Capstone Turbine (NASDAQ:CPST) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Volatility and Risk
EDF has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Capstone Turbine has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
EDF pays an annual dividend of $0.30 per share and has a dividend yield of 10.4%. Capstone Turbine does not pay a dividend. EDF pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
0.1% of EDF shares are owned by institutional investors. Comparatively, 11.3% of Capstone Turbine shares are owned by institutional investors. 1.8% of Capstone Turbine shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and price targets for EDF and Capstone Turbine, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Capstone Turbine has a consensus price target of $2.00, indicating a potential upside of 34.23%. Given Capstone Turbine’s stronger consensus rating and higher probable upside, analysts plainly believe Capstone Turbine is more favorable than EDF.
Valuation and Earnings
This table compares EDF and Capstone Turbine’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EDF||$78.71 billion||0.53||$3.59 billion||$0.25||11.58|
|Capstone Turbine||$77.17 million||1.04||-$23.92 million||($0.78)||-1.91|
EDF has higher revenue and earnings than Capstone Turbine. Capstone Turbine is trading at a lower price-to-earnings ratio than EDF, indicating that it is currently the more affordable of the two stocks.
This table compares EDF and Capstone Turbine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EDF beats Capstone Turbine on 9 of the 16 factors compared between the two stocks.
EDF Company Profile
Electricité de France S.A., an integrated energy company, engages in the generation, transmission, distribution, supply, and trading of energies in France and internationally. It generates electricity through nuclear, fossil-fire, hydro, photovoltaic, wind, biomass, biogas, and cogeneration plants. The company also manages low and medium-voltage public distribution network; and operates, maintains, and develops high-voltage and very-high-voltage electricity transmission networks. In addition, it is involved in the commodity trading activities; and provision of energy services, including district heating services, thermal energy services, etc. As of February 14, 2017, the company supplied energy and services to approximately 36.7 million customers. It serves small businesses, local authorities, and industrial and residential customers. Electricité de France S.A. was founded in 1946 and is headquartered in Paris, France.
Capstone Turbine Company Profile
Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply. The company's microturbines are also used as battery charging generators for hybrid electric vehicle applications. It also provides various accessories, including rotary gas compressors with digital controls; heat recovery modules for CHP applications; dual mode controllers that allow automatic transition between grid connect and stand-alone modes; batteries with digital controls for stand-alone or dual-mode operations; batteries with digital controls; power servers for multipacked installations; protocol converters for Internet access; packaging options; and miscellaneous parts, such as frames, exhaust ducting, backflow dampers, and installation hardware. In addition, the company remanufactures microturbine engines; and provides after-market parts and services. It markets and sells its products primarily through distributors and original equipment manufacturers. Capstone Turbine Corporation was founded in 1988 and is headquartered in Van Nuys, California.
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