SSE PLC/S (SSEZY) and FirstEnergy (FE) Head-To-Head Comparison

FirstEnergy (NYSE:FE) and SSE PLC/S (OTCMKTS:SSEZY) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares FirstEnergy and SSE PLC/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstEnergy $14.02 billion 1.26 -$1.72 billion $3.07 11.85
SSE PLC/S $41.41 billion 0.36 $1.09 billion $1.61 9.19

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

Dividends

FirstEnergy pays an annual dividend of $1.44 per share and has a dividend yield of 4.0%. SSE PLC/S pays an annual dividend of $1.72 per share and has a dividend yield of 11.6%. FirstEnergy pays out 46.9% of its earnings in the form of a dividend. SSE PLC/S pays out 106.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and recommmendations for FirstEnergy and SSE PLC/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstEnergy 0 4 9 0 2.69
SSE PLC/S 0 1 2 0 2.67

FirstEnergy currently has a consensus price target of $38.30, suggesting a potential upside of 5.28%. Given FirstEnergy’s stronger consensus rating and higher probable upside, research analysts clearly believe FirstEnergy is more favorable than SSE PLC/S.

Risk & Volatility

FirstEnergy has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, SSE PLC/S has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

94.4% of FirstEnergy shares are held by institutional investors. Comparatively, 0.3% of SSE PLC/S shares are held by institutional investors. 0.3% of FirstEnergy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares FirstEnergy and SSE PLC/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstEnergy -4.60% 24.39% 3.74%
SSE PLC/S N/A N/A N/A

Summary

FirstEnergy beats SSE PLC/S on 11 of the 16 factors compared between the two stocks.

FirstEnergy Company Profile

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. It owns and operates coal-fired, nuclear, hydroelectric, oil and natural gas, wind, and solar power generating facilities. The company also provides energy-related products and services to retail and wholesale customers. It operates 24,493 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 276,555 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits, as well as owns substations with a total installed transformer capacity of approximately 164,470,215 kilovolt-amperes. The company serves approximately six million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was founded in 1996 and is headquartered in Akron, Ohio.

SSE PLC/S Company Profile

SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company operates through three segments: Wholesale, Networks, and Retail. It generates electricity from gas, oil, coal, water, and wind. The company transmits and distributes electricity to approximately 3.7 million homes and businesses across the north of the central belt of Scotland and also central southern England; owns and maintains 132 kilovolts (KV), 275kV, and 400kV electricity transmission network; and manages 130,000 kilometers of overhead lines and underground cables, 106,000 substations, and approximately 100 subsea cables. It also produces, stores, distributes, and supplies gas; and offers other energy-related services. In addition, it engages in electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provision of corporate and 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.

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