Guangdong Investment (OTCMKTS:GGDVY – Get Rating) and Pennon Group (OTCMKTS:PEGRY – Get Rating) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Earnings & Valuation
This table compares Guangdong Investment and Pennon Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
Guangdong Investment is trading at a lower price-to-earnings ratio than Pennon Group, indicating that it is currently the more affordable of the two stocks.
Guangdong Investment pays an annual dividend of $10.76 per share and has a dividend yield of 24.4%. Pennon Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.9%. Guangdong Investment pays out 30.1% of its earnings in the form of a dividend. Pennon Group pays out 29.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of current recommendations and price targets for Guangdong Investment and Pennon Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pennon Group has a consensus target price of $1,048.00, suggesting a potential upside of 5,418.69%. Given Pennon Group’s higher possible upside, analysts clearly believe Pennon Group is more favorable than Guangdong Investment.
Insider and Institutional Ownership
0.0% of Guangdong Investment shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Guangdong Investment and Pennon Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Guangdong Investment beats Pennon Group on 5 of the 8 factors compared between the two stocks.
About Guangdong Investment
Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, hotel ownership, energy project operation and management, and road and bridge operation businesses. The company’s Water Resources segment provides water distribution, sewage treatment, water pipeline installation and consultancy services, constructs water supply and sewage treatment infrastructure, and sells machineries in Mainland China and Hong Kong. Its Property Investment and Development segment invests in and rents various properties in Hong Kong and Mainland China; and develops and sells properties in Mainland China. This segment also provides property management services for various commercial properties. The company’s Department Stores Operation segment operates department stores in Mainland China. Its Electric Power Generation segment operates coal-fired power plants that supply electricity and steam in the Guangdong province, Mainland China. The company’s Hotel Operation and Management segment operate hotels and provides hotel management services to third parties in Hong Kong and Mainland China. Its Road and Bridge segment invests in various road and bridge projects, which engages in the toll road operation and road management in Mainland China. The company’s Others segment provides treasury services in Hong Kong and Mainland China, as well as corporate and other related services. It also offers financing, marketing management, environmental engineering, and water technology development and consultation services. The company was formerly known as Union Globe Development Limited and changed its name to Guangdong Investment Limited in January 1987. The company was incorporated in 1973 and is based in Central, Hong Kong. Guangdong Investment Limited operates as a subsidiary of GDH Limited.
About Pennon Group
Pennon Group Plc provides clean water and wastewater services in the United Kingdom. It provides water and wastewater services for customers in Cornwall, Devon, and parts of Dorset and Somerset; water-only services in the areas of Dorset, Hampshire, and Wiltshire; and water and wastewater retail services to non-household customers in Great Britain. The company also offers regulated water to approximately 1.2 million customers in the Bristol region. It serves approximately 50 million household and non-household customers. The company was incorporated in 1989 and is based in Exeter, the United Kingdom.
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