Critical Survey: Altus Power (NYSE:AMPS) & FirstEnergy (NYSE:FE)

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

Earnings and Valuation

This table compares FirstEnergy and Altus Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstEnergy	$12.87 billion	1.80	$1.10 billion	$1.55	25.92
Altus Power	$155.16 million	5.04	-$9.35 million	$0.22	22.11

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FirstEnergy	6.64%	11.38%	2.93%
Altus Power	19.18%	4.79%	1.16%

Risk & Volatility

FirstEnergy has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Altus Power has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for FirstEnergy and Altus Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstEnergy	1	7	5	0	2.31
Altus Power	0	3	5	1	2.78

FirstEnergy presently has a consensus price target of $46.27, suggesting a potential upside of 15.19%. Altus Power has a consensus price target of $5.06, suggesting a potential upside of 4.06%. Given FirstEnergy’s higher possible upside, equities research analysts clearly believe FirstEnergy is more favorable than Altus Power.

Institutional & Insider Ownership

89.4% of FirstEnergy shares are owned by institutional investors. Comparatively, 46.6% of Altus Power shares are owned by institutional investors. 0.2% of FirstEnergy shares are owned by insiders. Comparatively, 24.3% of Altus Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

FirstEnergy beats Altus Power on 8 of the 14 factors compared between the two stocks.

About FirstEnergy

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

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.