Financial Survey: Far East Wind Power (OTCMKTS:FEWP) vs. AES (NYSE:AES)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AES	10.78%	22.66%	3.84%
Far East Wind Power	N/A	N/A	N/A

Institutional & Insider Ownership

93.1% of AES shares are held by institutional investors. 0.8% of AES shares are held by company insiders. Comparatively, 3.3% of Far East Wind Power shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for AES and Far East Wind Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES	0	8	0	0	2.00
Far East Wind Power	0	0	0	0	0.00

AES presently has a consensus target price of $15.71, indicating a potential upside of 7.01%. Given AES’s stronger consensus rating and higher possible upside, research analysts clearly believe AES is more favorable than Far East Wind Power.

Valuation and Earnings

This table compares AES and Far East Wind Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES	$12.23 billion	0.86	$910.00 million	$1.87	7.85
Far East Wind Power	N/A	N/A	N/A	($0.03)	N/A

AES has higher revenue and earnings than Far East Wind Power. Far East Wind Power is trading at a lower price-to-earnings ratio than AES, indicating that it is currently the more affordable of the two stocks.

Summary

AES beats Far East Wind Power on 9 of the 10 factors compared between the two stocks.

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.

About Far East Wind Power

Far East Wind Power Corp., a development stage company, focuses on the development, construction, and operation of utility-scale wind energy projects primarily in the People’s Republic of China. The company was formerly known as Celestial Delights USA Corp. and changed its name to Far East Wind Power Corp. in February 2010. Far East Wind Power Corp. was founded in 2008 and is based in Beijing, the People’s Republic of China.