Contrasting A2A (OTCMKTS:AEMMY) & Avista (NYSE:AVA)

A2A (OTCMKTS:AEMMY) and Avista (NYSE:AVA) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares A2A and Avista’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A2A	N/A	N/A	N/A
Avista	11.83%	7.85%	2.57%

Earnings and Valuation

This table compares A2A and Avista”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A2A	N/A	N/A	N/A	N/A	N/A
Avista	$1.96 billion	1.64	$193.00 million	$2.77	13.88

Avista has higher revenue and earnings than A2A.

Institutional & Insider Ownership

85.2% of Avista shares are held by institutional investors. 0.8% of Avista shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for A2A and Avista, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A2A	0	0	0	0	0.00
Avista	0	6	1	0	2.14

Avista has a consensus price target of $39.25, indicating a potential upside of 2.08%. Given Avista’s stronger consensus rating and higher probable upside, analysts clearly believe Avista is more favorable than A2A.

Summary

Avista beats A2A on 9 of the 9 factors compared between the two stocks.

About A2A

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, biomass, and wind plants; and sells and distributes gas. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting systems and street lights, and water purification and sewer activities, as well as offers garbage collection, street sweeping, video surveillance, energy efficiency, and electric mobility services. A2A S.p.A. is headquartered in Milan, Italy.

About Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.