Analyzing EuroSite Power (OTCMKTS:EUSP) & AES (NYSE:AES)

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

Risk & Volatility

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

Earnings and Valuation

This table compares EuroSite Power and AES”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroSite Power	$7.56 million	0.66	$470,000.00	N/A	N/A
AES	$12.67 billion	1.00	$249.00 million	$0.72	24.81

AES has higher revenue and earnings 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%

Institutional and Insider Ownership

93.1% of AES shares are owned by institutional investors. 0.6% of AES shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for EuroSite Power and AES, as reported 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	0	2.75

AES has a consensus target price of $21.50, suggesting a potential upside of 20.38%. Given AES’s higher possible upside, analysts clearly believe AES is more favorable than EuroSite Power.

Summary

AES beats EuroSite Power on 11 of the 11 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.