Head-To-Head Analysis: Avangrid (NYSE:AGR) and Principal Solar (OTCMKTS:PSWW)

Principal Solar (OTCMKTS:PSWW) and Avangrid (NYSE:AGR) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Principal Solar and Avangrid, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Principal Solar	0	0	0	0	0.00
Avangrid	1	2	0	0	1.67

Avangrid has a consensus price target of $34.67, suggesting a potential downside of 2.89%. Given Avangrid’s stronger consensus rating and higher probable upside, analysts plainly believe Avangrid is more favorable than Principal Solar.

Profitability

This table compares Principal Solar and Avangrid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Principal Solar	N/A	N/A	N/A
Avangrid	12.89%	5.37%	2.46%

Risk & Volatility

Principal Solar has a beta of 6.67, meaning that its stock price is 567% more volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

13.1% of Avangrid shares are held by institutional investors. 39.2% of Principal Solar shares are held by insiders. Comparatively, 0.1% of Avangrid shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Principal Solar and Avangrid”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Solar	N/A	N/A	N/A	N/A	N/A
Avangrid	$8.71 billion	1.59	$786.00 million	$2.91	12.27

Avangrid has higher revenue and earnings than Principal Solar.

Summary

Avangrid beats Principal Solar on 7 of the 9 factors compared between the two stocks.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.

About Avangrid

Avangrid, Inc., an energy services holding company, engages in the regulated energy transmission and distribution, and renewable energy generation businesses in the United States. The company operates through Networks and Renewables segments. It is involved in the generation, transmission, and distribution of electricity; and distribution, transportation, and sale of natural gas. In addition, the company operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. Further, it delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities, as well as generates and provides power and other services to federal and state agencies, institutional retail, and joint action agencies. Additionally, the company delivers thermal output to wholesale customers in the Western United States. It owns eight electric and natural gas utilities, serving 3.3 million customers in New York and New England, as well as owns and operates 9.3 gigawatts of electricity capacity primarily through wind power in 22 states. Avangrid, Inc. was incorporated in 1997 and is headquartered in Orange, Connecticut. The company operates as a subsidiary of Iberdrola, S.A.