Comparing Emera (OTCMKTS:EMRAF) and Edison International (NYSE:EIX)

Edison International (NYSE:EIX) and Emera (OTCMKTS:EMRAF) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Edison International and Emera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edison International	1	4	4	0	2.33
Emera	0	1	0	0	2.00

Edison International presently has a consensus target price of $73.60, suggesting a potential upside of 5.25%. Emera has a consensus target price of $61.40, suggesting a potential upside of 81.23%. Given Emera’s higher possible upside, analysts clearly believe Emera is more favorable than Edison International.

Valuation & Earnings

This table compares Edison International and Emera’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edison International	$16.34 billion	1.65	$1.41 billion	$3.12	22.41
Emera	N/A	N/A	N/A	$1.97	17.24

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

Profitability

This table compares Edison International and Emera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Edison International	8.35%	12.63%	2.49%
Emera	N/A	N/A	N/A

Insider and Institutional Ownership

88.9% of Edison International shares are owned by institutional investors. Comparatively, 23.8% of Emera shares are owned by institutional investors. 1.0% of Edison International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Edison International pays an annual dividend of $3.12 per share and has a dividend yield of 4.5%. Emera pays an annual dividend of $1.45 per share and has a dividend yield of 4.3%. Edison International 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. Emera pays out 73.8% of its earnings in the form of a dividend. Edison International has increased its dividend for 21 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Edison International beats Emera on 12 of the 14 factors compared between the two stocks.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.

About Emera

Emera Incorporated, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through natural gas, solar, hydroelectricity, coal, and biomass power plants. The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline. As of December 31, 2023, the company's electric utilities served approximately 840,000 customers in West Central Florida; 549,000 customers in Nova Scotia; 134,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and gas utilities and infrastructure served approximately 490,000 customers across Florida and 540,000 customers in New Mexico. The company was incorporated in 1998 and is headquartered in Halifax, Canada.