Sky Solar (OTCMKTS: CPYYY) and CENTRICA PLC/S (OTCMKTS:CPYYY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sky Solar and CENTRICA PLC/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sky Solar 0 0 2 0 3.00
CENTRICA PLC/S 2 2 3 0 2.14

Sky Solar presently has a consensus price target of $5.00, indicating a potential upside of 437.63%. Given Sky Solar’s stronger consensus rating and higher probable upside, analysts plainly believe Sky Solar is more favorable than CENTRICA PLC/S.

Dividends

CENTRICA PLC/S pays an annual dividend of $0.85 per share and has a dividend yield of 11.1%. Sky Solar does not pay a dividend. CENTRICA PLC/S pays out 130.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Sky Solar and CENTRICA PLC/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sky Solar N/A N/A N/A
CENTRICA PLC/S N/A N/A N/A

Volatility & Risk

Sky Solar has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, CENTRICA PLC/S has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of Sky Solar shares are owned by institutional investors. Comparatively, 0.1% of CENTRICA PLC/S shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Sky Solar and CENTRICA PLC/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sky Solar $56.73 million 6.39 -$33.17 million ($0.80) -1.16
CENTRICA PLC/S $36.11 billion 0.30 $429.17 million $0.65 11.77

CENTRICA PLC/S has higher revenue and earnings than Sky Solar. Sky Solar is trading at a lower price-to-earnings ratio than CENTRICA PLC/S, indicating that it is currently the more affordable of the two stocks.

Sky Solar Company Profile

Sky Solar Holdings, Ltd., an investment holding company, operates as an independent power producer worldwide. The company develops, owns, and operates solar parks primarily in the downstream solar market. It also sells solar energy systems, including pipeline; and engineering, construction, and procurement services, as well as engages in building and transferring solar parks. As of December 31, 2017, the company developed 318 solar parks with an aggregate capacity of 377.2 megawatts (MW) in Japan, Bulgaria, the Czech Republic, Spain, Canada, the United States, and Uruguay; and owned and operated 196.7 MW of solar parks, including 96.3 MW in Japan, 5.6 MW in the Czech Republic, 0.2 MW in Canada, 0.9 MW in Spain, 22.1 MW in the United States, and 71.6 MW in Uruguay. It also had approximately 400 MW of solar projects in various stages of development in countries, such as Chile, Japan, Canada, and the United States comprising 6.6 MW under construction, 180.1 MW of shovel-ready projects, and approximately 250 MW of solar parks in pipeline. The company has strategic partnership agreement with Hudson Clean Energy Partners for investing in renewable power and clean energy. Sky Solar Holdings, Ltd. was founded in 2009 and is headquartered in Admiralty, Hong Kong.

CENTRICA PLC/S Company Profile

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, Exploration & Production, and Centrica Storage segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it is involved in the trade and optimization of energy activities; provision of vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides intermediary services, including claims handling and administration, as well as business, finance, and data management services; and offers sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.

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