Critical Analysis: Kyushu Electric Power (OTCMKTS:KYSEY) vs. Central Puerto (NYSE:CEPU)

Central Puerto (NYSE:CEPU) and Kyushu Electric Power (OTCMKTS:KYSEY) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Central Puerto and Kyushu Electric Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Puerto	$782.60 million	2.70	$277.08 million	$2.08	6.70
Kyushu Electric Power	N/A	N/A	N/A	($203.58)	-0.06

Central Puerto has higher revenue and earnings than Kyushu Electric Power. Kyushu Electric Power is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Central Puerto and Kyushu Electric Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Puerto	37.86%	15.93%	11.06%
Kyushu Electric Power	N/A	N/A	N/A

Insider & Institutional Ownership

3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Central Puerto and Kyushu Electric Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	1	0	2.50
Kyushu Electric Power	0	1	0	0	2.00

Central Puerto presently has a consensus price target of $17.50, indicating a potential upside of 25.58%. Given Central Puerto’s stronger consensus rating and higher possible upside, analysts clearly believe Central Puerto is more favorable than Kyushu Electric Power.

Summary

Central Puerto beats Kyushu Electric Power on 11 of the 11 factors compared between the two stocks.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

About Kyushu Electric Power

Kyushu Electric Power Company, Incorporated engages in the power generation, transmission, distribution, and sales in Japan and internationally. The company operates through Power Generation and Sales Business, Transmission and Distribution Business, ICT Services Business, Urban Development Business, Overseas Businesses, and Other Energy Services Business segments. It generates hydroelectric, thermal, geothermal, nuclear, and other power energy facilities. In addition, the company constructs, maintains, and sells electrical equipment, gas/LNG, coal, and renewable energy related services. Further, it is involved in data communication, optical broadband, information system, and data center business, as well as constructs and maintains telecommunications related services. Additionally, the company engages in development of real estate and social infrastructure business. Kyushu Electric Power Company, Incorporated was incorporated in 1951 and is headquartered in Fukuoka City, Japan.