Comparing Pinnacle West Capital (NYSE:PNW) & China Resources Power (OTCMKTS:CRPJY)

Pinnacle West Capital (NYSE:PNW) and China Resources Power (OTCMKTS:CRPJY) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Earnings & Valuation

This table compares Pinnacle West Capital and China Resources Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle West Capital	$4.89 billion	1.99	$501.56 million	$4.59	18.63
China Resources Power	$13.20 billion	1.00	$1.41 billion	N/A	N/A

China Resources Power has higher revenue and earnings than Pinnacle West Capital.

Institutional & Insider Ownership

91.5% of Pinnacle West Capital shares are held by institutional investors. 0.2% of Pinnacle West Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Pinnacle West Capital and China Resources Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinnacle West Capital	0	6	6	0	2.50
China Resources Power	0	0	0	0	N/A

Pinnacle West Capital currently has a consensus price target of $80.54, suggesting a potential downside of 5.82%. Given Pinnacle West Capital’s higher probable upside, research analysts plainly believe Pinnacle West Capital is more favorable than China Resources Power.

Dividends

Pinnacle West Capital pays an annual dividend of $3.52 per share and has a dividend yield of 4.1%. China Resources Power pays an annual dividend of $1.61 per share and has a dividend yield of 3.9%. Pinnacle West Capital pays out 76.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pinnacle West Capital has increased its dividend for 12 consecutive years. Pinnacle West Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Pinnacle West Capital and China Resources Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle West Capital	12.65%	9.75%	2.48%
China Resources Power	N/A	N/A	N/A

Volatility & Risk

Pinnacle West Capital has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, China Resources Power has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Summary

Pinnacle West Capital beats China Resources Power on 10 of the 14 factors compared between the two stocks.

About Pinnacle West Capital

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.

About China Resources Power

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects. As of December 31, 2022, the company had 42 coal-fired power plants, 159 wind farms, 38 photovoltaic power plants, 2 hydroelectric plants, and 5 gas-fired plants with total attributable operational generation capacity of 52,581 MW. It also engages in coal mining and marketing activities; and undertakes combined generation of heat and power, coal-electricity integration, and other projects. In addition, the company is involved in the distribution of energy, power sale, intelligent energy, coal mining, and other areas; and distribution network construction and operation, distributed energy resource, and other businesses. The company was incorporated in 2001 and is based in Wan Chai, Hong Kong. China Resources Power Holdings Company Limited operates as a subsidiary of CRH (Power) Limited.