Centrica (OTCMKTS:CPYYY) versus CenterPoint Energy (NYSE:CNP) Critical Comparison

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

Valuation & Earnings

This table compares Centrica and CenterPoint Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centrica $28.95 billion 0.13 -$1.31 billion $0.37 7.15
CenterPoint Energy $12.30 billion 0.92 $791.00 million $1.79 11.63

CenterPoint Energy has lower revenue, but higher earnings than Centrica. Centrica is trading at a lower price-to-earnings ratio than CenterPoint Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Centrica has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, CenterPoint Energy has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Centrica and CenterPoint Energy’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
CenterPoint Energy -9.49% 14.78% 2.62%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Centrica and CenterPoint Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centrica 0 4 6 0 2.60
CenterPoint Energy 0 9 7 0 2.44

CenterPoint Energy has a consensus price target of $21.56, suggesting a potential upside of 3.57%. Given CenterPoint Energy’s higher possible upside, analysts plainly believe CenterPoint Energy is more favorable than Centrica.

Institutional & Insider Ownership

0.1% of Centrica shares are held by institutional investors. Comparatively, 91.1% of CenterPoint Energy shares are held by institutional investors. 0.1% of CenterPoint Energy shares are held by company insiders. 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.

Summary

CenterPoint Energy beats Centrica on 9 of the 14 factors compared between the two stocks.

Centrica Company Profile

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Norway, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Upstream 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 and cooling systems and related appliances, as well as offers maintenance/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 liquefied natural gas vessel chartering services. It primarily supplies energy and services to approximately 26.2 million customers under the British Gas, Bord Gáis, Direct Energy, and Hive 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.

CenterPoint Energy Company Profile

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company's Houston Electric T&D segment electric transmission and distribution services to electric utility. It owns 236 substation sites with a total installed rated transformer capacity of 68,053 megavolt amperes. Its Indiana Electric Integrated segment provides energy delivery services to electric customers and electric generation assets to electric customers and wholesale markets. The company's Natural Gas Distribution segment sells regulated intrastate natural gas; provides natural gas transportation and storage services for residential, commercial, industrial, and transportation customers; and offers unregulated services comprising home appliance maintenance and repair services. This segment owns approximately 98,000 linear miles of natural gas distribution mains. Its Energy Services segment provides physical natural gas supplies primarily to commercial and industrial customers, and electric and natural gas utilities; natural gas management services; and physical delivery services, as well as procures and optimizes transportation and storage assets. It owns and operates 210 miles of intrastate pipeline in Louisiana and Texas; and leases transportation capacity on various interstate and intrastate pipelines, and storage. The company's Infrastructure Services segment offers underground pipeline construction and repair services. Its Midstream Investment segment offers natural gas and crude oil gathering, and natural gas processing services to its producer customers; and interstate and intrastate natural gas pipeline transportation and storage services to its producer, power plant, local distribution company, and industrial end-user customers. As of March 2, 2020, it served approximately 7 million electric and natural gas metered customers. CenterPoint Energy, Inc. was founded in 1866 and is headquartered in Houston, Texas.

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