Altus Power (NYSE:AMPS) and PPL (NYSE:PPL) Financial Comparison

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

Volatility & Risk

Altus Power has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, PPL has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Dividends

Altus Power pays an annual dividend of $1.59 per share and has a dividend yield of 47.3%. PPL pays an annual dividend of $1.03 per share and has a dividend yield of 3.2%. Altus Power pays out -3,180.0% of its earnings in the form of a dividend. PPL pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altus Power is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Altus Power	13.55%	2.52%	0.63%
PPL	10.17%	9.26%	3.30%

Valuation and Earnings

This table compares Altus Power and PPL”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	$172.39 million	3.13	-$9.35 million	($0.05)	-67.20
PPL	$8.26 billion	2.90	$740.00 million	$1.03	31.51

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

Institutional and Insider Ownership

46.5% of Altus Power shares are held by institutional investors. Comparatively, 77.0% of PPL shares are held by institutional investors. 24.3% of Altus Power shares are held by company insiders. Comparatively, 0.2% of PPL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Altus Power and PPL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altus Power	0	2	5	2	3.00
PPL	0	4	6	0	2.60

Altus Power currently has a consensus target price of $6.00, indicating a potential upside of 78.57%. PPL has a consensus target price of $33.18, indicating a potential upside of 2.22%. Given Altus Power’s stronger consensus rating and higher probable upside, research analysts plainly believe Altus Power is more favorable than PPL.

Summary

Altus Power beats PPL on 9 of the 17 factors compared between the two stocks.

About Altus Power

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

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.