Head to Head Analysis: AES (NYSE:AES) and EuroSite Power (OTCMKTS:EUSP)

EuroSite Power (OTCMKTS:EUSP) and AES (NYSE:AES) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Institutional & Insider Ownership

93.1% of AES shares are owned by institutional investors. 0.6% of AES shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

EuroSite Power has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, AES has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for EuroSite Power and AES, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroSite Power	0	0	0	0	N/A
AES	0	2	6	1	2.89

AES has a consensus price target of $21.50, suggesting a potential upside of 6.17%. Given AES’s higher probable upside, analysts clearly believe AES is more favorable than EuroSite Power.

Profitability

This table compares EuroSite Power and AES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroSite Power	5.05%	3.68%	3.20%
AES	6.07%	32.74%	4.10%

Valuation and Earnings

This table compares EuroSite Power and AES”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroSite Power	$7.56 million	0.52	$470,000.00	N/A	N/A
AES	$12.43 billion	1.16	$249.00 million	$0.72	28.13

AES has higher revenue and earnings than EuroSite Power.

Summary

AES beats EuroSite Power on 12 of the 12 factors compared between the two stocks.

About EuroSite Power

EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.

About AES

The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.