E.On (OTCMKTS:EONGY) and SSE (OTC:SSEZF) Financial Contrast

E.On (OTCMKTS:EONGY) and SSE (OTC:SSEZF) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Dividends

E.On pays an annual dividend of $0.41 per share and has a dividend yield of 3.1%. SSE pays an annual dividend of $0.87 per share and has a dividend yield of 4.2%. E.On pays out -136.7% of its earnings in the form of a dividend. SSE pays out 419.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares E.On and SSE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E.On	0.55%	10.83%	1.99%
SSE	N/A	N/A	N/A

Valuation & Earnings

This table compares E.On and SSE’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.On	$101.39 billion	N/A	$559.55 million	($0.30)	-44.76
SSE	N/A	N/A	N/A	$0.21	99.79

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for E.On and SSE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.On	0	0	3	0	3.00
SSE	0	0	0	0	N/A

Institutional and Insider Ownership

40.4% of SSE shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

E.On beats SSE on 6 of the 10 factors compared between the two stocks.

About E.On

E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.

About SSE

SSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.