RWE Aktiengesellschaft (OTCMKTS:RWEOY) versus SSE (OTC:SSEZF) Head to Head Analysis

RWE Aktiengesellschaft (OTCMKTS:RWEOY) and SSE (OTC:SSEZF) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Insider & Institutional Ownership

40.4% of SSE shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares RWE Aktiengesellschaft and SSE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RWE Aktiengesellschaft	6.99%	10.48%	3.27%
SSE	N/A	N/A	N/A

Dividends

RWE Aktiengesellschaft pays an annual dividend of $0.75 per share and has a dividend yield of 2.0%. SSE pays an annual dividend of $0.87 per share and has a dividend yield of 3.8%. RWE Aktiengesellschaft pays out 28.5% 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.

Valuation & Earnings

This table compares RWE Aktiengesellschaft 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
RWE Aktiengesellschaft	$30.91 billion	N/A	$1.57 billion	$2.63	14.07
SSE	N/A	N/A	N/A	$0.21	109.52

RWE Aktiengesellschaft has higher revenue and earnings than SSE. RWE Aktiengesellschaft 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 breakdown of current ratings and recommmendations for RWE Aktiengesellschaft and SSE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE Aktiengesellschaft	0	1	1	0	2.50
SSE	0	0	0	0	N/A

Summary

RWE Aktiengesellschaft beats SSE on 7 of the 10 factors compared between the two stocks.

About RWE Aktiengesellschaft

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 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.