Contrasting Spark Infrastructure Group (OTCMKTS:SFDPF) and American Electric Power (NASDAQ:AEP)

American Electric Power (NASDAQ:AEP) and Spark Infrastructure Group (OTCMKTS:SFDPF) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

75.2% of American Electric Power shares are held by institutional investors. 0.1% of American Electric Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares American Electric Power and Spark Infrastructure Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Electric Power	13.52%	11.31%	2.98%
Spark Infrastructure Group	N/A	N/A	N/A

Valuation and Earnings

This table compares American Electric Power and Spark Infrastructure Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Electric Power	$19.52 billion	2.65	$2.21 billion	$5.02	19.37
Spark Infrastructure Group	N/A	N/A	N/A	N/A	N/A

American Electric Power has higher revenue and earnings than Spark Infrastructure Group.

Analyst Ratings

This is a summary of recent ratings and recommmendations for American Electric Power and Spark Infrastructure Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Electric Power	2	6	6	0	2.29
Spark Infrastructure Group	0	0	0	0	N/A

American Electric Power presently has a consensus target price of $98.43, suggesting a potential upside of 1.21%. Given American Electric Power’s higher probable upside, analysts clearly believe American Electric Power is more favorable than Spark Infrastructure Group.

Summary

American Electric Power beats Spark Infrastructure Group on 8 of the 8 factors compared between the two stocks.

About American Electric Power

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

About Spark Infrastructure Group

Spark Infrastructure Group engages in investment in regulated utility infrastructure. It operates through the following segments: Victoria Power Networks, SA Power Networks, Transgrid, and Bomen Group. The Victoria Power Networks segment holds interests in CitiPower and Powercor. The SA Power Networks segment covers interests in electricity distribution in South Australia. The TransGrid segment includes interests in electricity transmission businesses in New South Wales. The Bomen Solar Farm segment owns Bomen Solar Farm HoldCo Pty Ltd. and Bomen Solar Farm Hold Trust. The company was founded in 2005 and is headquartered in Sydney, Australia.