Critical Analysis: Avangrid (NYSE:AGR) and Altus Power (NYSE:AMPS)

Altus Power (NYSE:AMPSGet Rating) and Avangrid (NYSE:AGRGet Rating) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Valuation and Earnings

This table compares Altus Power and Avangrid’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altus Power $71.80 million 14.85 $5.91 million ($0.02) -341.83
Avangrid $6.97 billion 2.35 $707.00 million $2.32 18.25

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

Analyst Recommendations

This is a summary of current ratings and target prices for Altus Power and Avangrid, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altus Power 0 2 4 0 2.67
Avangrid 1 4 1 0 2.00

Altus Power currently has a consensus price target of $12.75, indicating a potential upside of 86.40%. Avangrid has a consensus price target of $45.20, indicating a potential upside of 6.78%. Given Altus Power’s stronger consensus rating and higher probable upside, analysts clearly believe Altus Power is more favorable than Avangrid.

Volatility & Risk

Altus Power has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Altus Power and Avangrid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altus Power -5.48% -0.54% -0.18%
Avangrid 11.66% 4.56% 2.32%

Insider & Institutional Ownership

43.7% of Altus Power shares are held by institutional investors. Comparatively, 12.5% of Avangrid shares are held by institutional investors. 41.0% of Altus Power shares are held by company insiders. Comparatively, 0.1% of Avangrid shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About Altus Power

(Get Rating)

Altus Power, Inc., a clean electrification company, originates, develops, owns, and operates roof, ground, and carport-based photovoltaic solar energy generation and storage systems. It serves commercial, industrial, public sector, and community solar customers. The company was founded in 2013 and is based in Stamford, Connecticut.

About Avangrid

(Get Rating)

Avangrid, Inc., an energy services holding company, engages in the regulated energy transmission and distribution, and renewable energy generation businesses in the United States. The company operates through Networks and Renewables segments. It is involved in the generation, transmission, and distribution of electricity; and distribution, transportation, and sale of natural gas. The company also operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. It delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, the company generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. It owns eight electric and natural gas utilities, serving 3.3 million customers in New York and New England, as well as owns and operates 8.8 gigawatts of electricity capacity primarily through wind power in 22 states. The company was incorporated in 1997 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

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