Severn Trent (OTCMKTS:SVTRF – Get Free Report) and Artesian Resources (NASDAQ:ARTNA – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Profitability
This table compares Severn Trent and Artesian Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Severn Trent | N/A | N/A | N/A |
| Artesian Resources | 16.71% | 8.39% | 2.29% |
Analyst Ratings
This is a breakdown of recent ratings for Severn Trent and Artesian Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Severn Trent | 0 | 2 | 0 | 0 | 2.00 |
| Artesian Resources | 0 | 0 | 0 | 0 | N/A |
Earnings and Valuation
This table compares Severn Trent and Artesian Resources’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Severn Trent | N/A | N/A | N/A | $0.82 | 35.75 |
| Artesian Resources | $99.45 million | 4.79 | $18.00 million | $1.72 | 26.94 |
Artesian Resources has higher revenue and earnings than Severn Trent. Artesian Resources is trading at a lower price-to-earnings ratio than Severn Trent, indicating that it is currently the more affordable of the two stocks.
Dividends
Severn Trent pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Artesian Resources pays an annual dividend of $1.13 per share and has a dividend yield of 2.4%. Severn Trent pays out 98.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Artesian Resources pays out 65.7% of its earnings in the form of a dividend. Artesian Resources has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
37.3% of Severn Trent shares are held by institutional investors. Comparatively, 53.2% of Artesian Resources shares are held by institutional investors. 20.6% of Artesian Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Artesian Resources beats Severn Trent on 9 of the 11 factors compared between the two stocks.
About Severn Trent
Severn Trent PLC operates as a water and sewerage company in England and Wales. It operates through two segments: Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment offers water and waste water services to approximately 4.8 million households and businesses. The Business Services segment generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar panels; property development; and offers affinity products and search services. It also provides services to municipal and industrial clients, including the Ministry of Defence and the Coal Authority for design, build, and operation of water and wastewater treatment facilities and networks. Severn Trent PLC was founded in 1974 and is headquartered in Coventry, the United Kingdom.
About Artesian Resources
Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services in Delaware, Maryland, and Pennsylvania. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater collection, treatment infrastructure, and wastewater services to customers in Delaware. It also provides contract water and wastewater services; water, sewer, and internal service line protection plans; and wastewater management services, as well as design, construction, and engineering services. In addition, the company offers services to other water utilities, including operations and billing functions; owns real estate properties, including land for office buildings, a water treatment plant, and wastewater facility; and provides design, installation, maintenance, and repair services related to existing or proposed storm water management systems. As of December 31, 2022, it served approximately 94,600 customers in Delaware; 2,600 customers in Maryland; and 40 customers in Pennsylvania through 1,442 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.
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