Head-To-Head Review: PPL (NYSE:PPL) vs. Hydro One (OTCMKTS:HRNNF)

PPL (NYSE:PPL) and Hydro One (OTCMKTS:HRNNF) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares PPL and Hydro One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPL	9.53%	7.82%	2.86%
Hydro One	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for PPL and Hydro One, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPL	0	4	2	0	2.33
Hydro One	0	1	0	0	2.00

PPL currently has a consensus price target of $29.88, indicating a potential upside of 14.38%. Hydro One has a consensus price target of $31.40, indicating a potential upside of 12.50%. Given PPL’s stronger consensus rating and higher probable upside, equities research analysts plainly believe PPL is more favorable than Hydro One.

Earnings and Valuation

This table compares PPL and Hydro One’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPL	$8.57 billion	2.25	$756.00 million	$1.11	23.61
Hydro One	N/A	N/A	N/A	N/A	N/A

PPL has higher revenue and earnings than Hydro One.

Institutional and Insider Ownership

73.1% of PPL shares are owned by institutional investors. 0.2% of PPL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

PPL beats Hydro One on 9 of the 9 factors compared between the two stocks.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.5 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates high-voltage transmission lines and primary low-voltage distribution network. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.