TransAlta (NYSE:TAC) and RED ELECTRICA C/ADR (OTCMKTS:RDEIY) 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
56.2% of TransAlta shares are owned by institutional investors. Comparatively, 0.3% of RED ELECTRICA C/ADR shares are owned by institutional investors. 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 TransAlta and RED ELECTRICA C/ADR’s net margins, return on equity and return on assets.
This is a breakdown of current recommendations for TransAlta and RED ELECTRICA C/ADR, as provided by MarketBeat.
Risk and Volatility
TransAlta has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, RED ELECTRICA C/ADR has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
TransAlta pays an annual dividend of $0.12 per share and has a dividend yield of 2.3%. RED ELECTRICA C/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 5.3%. TransAlta pays out -66.7% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares TransAlta and RED ELECTRICA C/ADR’s gross revenue, earnings per share and valuation.
RED ELECTRICA C/ADR has higher revenue and earnings than TransAlta.
RED ELECTRICA C/ADR beats TransAlta on 7 of the 10 factors compared between the two stocks.
TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. The company operates through eight segments: Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, Energy Marketing, and Corporate. It generates and markets electricity through various generation facilities. The company has an aggregate net ownership interest of approximately 8,546 megawatts of generating capacity. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.
About RED ELECTRICA C/ADR
Red Eléctrica Corporación, S.A. transmits electricity; operates and manages transmission network for the electricity system; and manages electricity transmission grid in Spain and internationally. Its transmission network comprises approximately 43,800 kilometers; and has 86,654 MVA of transformer capacity. The company also provides consultancy, engineering, and construction services; telecommunications infrastructure services to telecommunications operators comprising leasing of dark fiber; and line and sub-station maintenance services. Red Eléctrica Corporación, S.A. was founded in 1985 and is based in Alcobendas, Spain.