SSE (OTC:SSEZF) vs. NorthWestern (NASDAQ:NWE) Financial Survey

SSE (OTC:SSEZF – Get Rating) and NorthWestern (NASDAQ:NWE – Get Rating) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares SSE and NorthWestern’s revenue, earnings per share and valuation.

Get SSE alerts:

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

Institutional and Insider Ownership

40.4% of SSE shares are owned by institutional investors. Comparatively, 96.1% of NorthWestern shares are owned by institutional investors. 0.9% of NorthWestern shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares SSE and NorthWestern’s net margins, return on equity and return on assets.

Analyst Ratings

This is a breakdown of current recommendations for SSE and NorthWestern, as provided by MarketBeat.

NorthWestern has a consensus target price of $56.50, indicating a potential upside of 0.66%. Given NorthWestern’s higher probable upside, analysts plainly believe NorthWestern is more favorable than SSE.

Dividends

SSE pays an annual dividend of $0.87 per share and has a dividend yield of 3.7%. NorthWestern pays an annual dividend of $2.56 per share and has a dividend yield of 4.6%. SSE pays out 419.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthWestern pays out 79.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NorthWestern has raised its dividend for 19 consecutive years. NorthWestern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NorthWestern beats SSE on 12 of the 13 factors compared between the two stocks.

About SSE

(Get Rating)

SSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

About NorthWestern

(Get Rating)

NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and various industrial customers. The company operates through three segments: Electric Utility Operations; Natural Gas Utility Operations; and Other. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,597 miles of electric transmission and 18,534 miles of electric distribution lines with approximately 121 transmission and distribution substations; and 2,235 miles of natural gas transmission and 5,099 miles of natural gas distribution lines with approximately 135 city gate stations in Montana. It also operates 1,308 miles of electric transmission and 2,342 miles of electric distribution lines in South Dakota with approximately 121 transmission and distribution substations; and 55 miles of natural gas transmission and 2,545 miles of natural gas distribution lines in South Dakota and Nebraska. The company serves approximately 764,200 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Corporation was incorporated in 1923 and is based in Sioux Falls, South Dakota.

Receive News & Ratings for SSE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SSE and related companies with MarketBeat.com's FREE daily email newsletter.