Hydro One (HRNNF) vs. Its Competitors Financial Analysis

Hydro One (OTCMKTS:HRNNF) is one of 103 public companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare Hydro One to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.

Dividends

Hydro One pays an annual dividend of $1.01 per share and has a dividend yield of 2.5%. Hydro One pays out 59.8% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.1% and pay out 64.0% of their earnings in the form of a dividend.

Institutional and Insider Ownership

60.0% of shares of all “Electric Utilities” companies are held by institutional investors. 6.2% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Hydro One and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydro One	14.49%	10.87%	3.50%
Hydro One Competitors	14.26%	9.78%	3.23%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hydro One and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	1	5	1	0	2.00
Hydro One Competitors	1426	6543	5520	140	2.32

As a group, “Electric Utilities” companies have a potential upside of 3.90%. Given Hydro One’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Hydro One has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Hydro One and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hydro One	$6.47 billion	$958.32 million	23.98
Hydro One Competitors	$65.54 billion	$1.54 billion	20.09

Hydro One’s competitors have higher revenue and earnings than Hydro One. Hydro One is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Hydro One competitors beat Hydro One on 9 of the 14 factors compared.

Hydro One Company Profile

Hydro One is an electricity transmission and distribution utility serving communities across Ontario, Canada. The company transports electricity over high-voltage transmission lines and delivers it through local distribution networks to homes and businesses. Its activities include operating, maintaining and upgrading electricity infrastructure, as well as planning and building transmission and distribution facilities. Hydro One also provides related services to support the reliability of the province’s electricity system.