Head to Head Review: AuraSource (OTCMKTS:ARAO) and NorthWestern (NYSE:NWE)

AuraSource (OTCMKTS:ARAO – Get Free Report) and NorthWestern (NYSE:NWE – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares AuraSource and NorthWestern’s top-line revenue, earnings per share and valuation.

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

Institutional & Insider Ownership

22.2% of AuraSource shares are owned by institutional investors. Comparatively, 96.1% of NorthWestern shares are owned by institutional investors. 4.7% of AuraSource shares are owned by insiders. Comparatively, 0.9% of NorthWestern shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for AuraSource and NorthWestern, as provided by MarketBeat.

NorthWestern has a consensus price target of $55.38, indicating a potential upside of 8.07%. Given NorthWestern’s higher possible upside, analysts clearly believe NorthWestern is more favorable than AuraSource.

Profitability

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

Summary

NorthWestern beats AuraSource on 9 of the 10 factors compared between the two stocks.

About AuraSource

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AuraSource, Inc. focuses on sales of electric automobiles. It operates through two segments, AuraMetal and AuraMoto. The AuraMetal segment focuses on the development and production of environmentally friendly and beneficiation process for complex ore, tailings, and slimes materials as industrial application solutions. The AuraMoto segment focuses on sourcing various vendors and customers in the automotive industry. AuraSource, Inc. is based in Tempe, Arizona.

About NorthWestern

(Get Free Report)

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.

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