Azure Power Global (AZRE) & Black Hills (BKH) Head-To-Head Contrast

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Azure Power Global (NYSE:AZRE) and Black Hills (NYSE:BKH) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Azure Power Global and Black Hills’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azure Power Global -11.97% -9.47% -1.68%
Black Hills 13.44% 10.01% 2.86%

Insider and Institutional Ownership

27.0% of Azure Power Global shares are held by institutional investors. Comparatively, 99.7% of Black Hills shares are held by institutional investors. 1.1% of Black Hills shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Azure Power Global and Black Hills, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power Global 0 0 3 0 3.00
Black Hills 1 3 2 0 2.17

Azure Power Global presently has a consensus target price of $26.00, suggesting a potential upside of 125.69%. Black Hills has a consensus target price of $60.33, suggesting a potential downside of 4.49%. Given Azure Power Global’s stronger consensus rating and higher probable upside, research analysts clearly believe Azure Power Global is more favorable than Black Hills.

Dividends

Black Hills pays an annual dividend of $1.90 per share and has a dividend yield of 3.0%. Azure Power Global does not pay a dividend. Black Hills pays out 56.5% of its earnings in the form of a dividend. Black Hills has increased its dividend for 48 consecutive years.

Earnings and Valuation

This table compares Azure Power Global and Black Hills’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azure Power Global $118.27 million 3.98 -$12.60 million ($0.65) -17.72
Black Hills $1.68 billion 2.25 $177.03 million $3.36 18.80

Black Hills has higher revenue and earnings than Azure Power Global. Azure Power Global is trading at a lower price-to-earnings ratio than Black Hills, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Azure Power Global has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Summary

Black Hills beats Azure Power Global on 11 of the 17 factors compared between the two stocks.

About Azure Power Global

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.

About Black Hills

Black Hills Corporation, through its subsidiaries, operates as a vertically-integrated utility company in the United States. The company's Electric Utilities segment generates, transmits, and distributes electricity to approximately 210,000 electric customers in South Dakota, Wyoming, Colorado, and Montana. This segment owns 941 megawatts of generation capacity and 8,839 miles of electric transmission and distribution lines. Its Gas Utilities segment distributes natural gas to approximately 1,042,000 natural gas utility customers in Arkansas, Colorado, Iowa, Nebraska, Kansas, and Wyoming. This segment owns 4,656 miles of intrastate gas transmission pipelines and 40,455 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The company's Power Generation segment produces electric power and sells the electric capacity and energy primarily to its utilities under long-term contracts. Its Mining segment produces coal at its coal mine located near Gillette, Wyoming and sells the coal to electric generation facilities. The company also provides appliance repair services to approximately 63,000 residential customers; and constructs and maintains gas infrastructure facilities and electrical systems for gas transportation and electric utilities customers. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.

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