Edison International (NYSE:EIX) and CHINA RESOURES/ADR (OTCMKTS:CRPJY) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Institutional and Insider Ownership
82.0% of Edison International shares are owned by institutional investors. 0.4% of Edison International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Edison International and CHINA RESOURES/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Edison International and CHINA RESOURES/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Edison International presently has a consensus price target of $73.50, suggesting a potential upside of 7.72%. Given Edison International’s higher possible upside, research analysts plainly believe Edison International is more favorable than CHINA RESOURES/ADR.
Risk and Volatility
Edison International has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, CHINA RESOURES/ADR has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Edison International pays an annual dividend of $2.42 per share and has a dividend yield of 3.5%. CHINA RESOURES/ADR pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Edison International pays out 53.8% of its earnings in the form of a dividend. CHINA RESOURES/ADR pays out 22.6% 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. Edison International has increased its dividend for 13 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Edison International and CHINA RESOURES/ADR’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Edison International||$12.32 billion||1.80||$689.00 million||$4.50||15.16|
|CHINA RESOURES/ADR||$9.37 billion||0.86||$593.17 million||$1.86||13.55|
Edison International has higher revenue and earnings than CHINA RESOURES/ADR. CHINA RESOURES/ADR is trading at a lower price-to-earnings ratio than Edison International, indicating that it is currently the more affordable of the two stocks.
Edison International beats CHINA RESOURES/ADR on 14 of the 16 factors compared between the two stocks.
About Edison International
Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. It generates electricity through hydroelectric, diesel/liquid petroleum gas, natural gas, nuclear, and photovoltaic sources. The company supplies electricity primarily to residential, commercial, industrial, agricultural, and other customers, as well as public authorities through transmission and distribution networks. Its transmission facilities consist of lines ranging from 33 kV to 500 kV and substations; and distribution system comprises approximately 53,000 line miles of overhead lines, 38,000 line miles of underground lines, and 800 substations located in California. The company serves approximately 5 million customers. Edison International was founded in 1886 and is based in Rosemead, California.
About CHINA RESOURES/ADR
China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in three segments: Thermal Power, Renewable Energy, and Coal Mining. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power projects, hydro-electric projects, and other clean and renewable energy projects. As of December 31, 2017, the company had 38 coal-fired power plants, 76 wind farms, 14 photovoltaic power plants, 2 hydroelectric plants, and 2 gas-fired plants with total attributable operational generation capacity of 36,077MW. It also produces, processes, and sells coal; and undertakes coastal thermal power, heat and power combined generation, coal-electricity integration, and other projects. In addition, the company engages in the power sale, distribution network construction and operation, distributed energy resource, and other businesses. Further, it provides various energy solutions. The company was founded in 2001 and is based in Wanchai, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Resources Power Holdings Company Limited is a subsidiary of CRH (Power) Limited.
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