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AQN vs NJR

AQN
Algonquin Power & Utilities Corp.
NEUTRAL
Price
$6.38
Market Cap
$4.9B
Sector
Utilities
AI Confidence
65%
NJR
New Jersey Resources Corporation
NEUTRAL
Price
$56.31
Market Cap
$5.68B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
AQN
91.14
NJR
17.43
Forward P/E
AQN
17.49
NJR
16.39
P/B Ratio
AQN
1.1
NJR
2.29
P/S Ratio
AQN
2.05
NJR
2.64
EV/EBITDA
AQN
14.44
NJR
14.02

Profitability

Gross Margin
AQN
38.16%
NJR
37.1%
Operating Margin
AQN
25.07%
NJR
29.63%
Profit Margin
AQN
-1.11%
NJR
15.18%
ROE
AQN
0.15%
NJR
13.66%
ROA
AQN
2.02%
NJR
4.1%

Growth

Revenue Growth
AQN
1.7%
NJR
23.9%
Earnings Growth
AQN
--
NJR
-7.6%

Financial Health

Debt/Equity
AQN
1.27
NJR
1.61
Current Ratio
AQN
1.23
NJR
0.83
Quick Ratio
AQN
0.65
NJR
0.43

Dividends

Dividend Yield
AQN
4.06%
NJR
3.37%
Payout Ratio
AQN
371.43%
NJR
57.28%

AI Verdict

AQN NEUTRAL

The deterministic health scores indicate significant concerns, with a Piotroski F-Score of 4/9 signaling borderline financial stability and no available Altman Z-Score limiting distress risk assessment. Despite a recent 1Y price surge of +47.5%, the stock trades at a steep valuation (P/E 91.14 vs sector avg 19.73) while reporting a negative profit margin (-1.11%) and an unsustainable dividend payout ratio (371.43%). However, strong operating metrics like 25.07% operating margin, improving EPS trends (+12.5% YoY), and a 4.06% dividend yield provide some support. The lack of insider activity and mixed analyst sentiment (hold) further justify a cautious stance.

Strengths
4.06% dividend yield provides income appeal in a low-growth sector
Strong operating margin of 25.07% indicates efficient cost management
Recent earnings surprises show volatility but include strong upside beats (e.g., +45.9% in May 2025)
Risks
Piotroski F-Score of 4/9 indicates weak financial health and elevated risk of underperformance
Extremely high P/E ratio of 91.14 vs forward P/E of 17.49 suggests speculative pricing and potential multiple contraction
Negative net profit margin (-1.11%) raises concerns about core profitability despite positive operating margins
NJR NEUTRAL

NJR presents a dichotomy between strong operational efficiency and stretched valuation. While the Piotroski F-Score of 5/9 indicates stable financial health, the stock is trading at a significant premium to its Graham Number ($42.23) and Intrinsic Value ($22.61). Strong revenue growth is currently decoupled from earnings growth, which has turned negative YoY. Despite analyst 'buy' ratings, bearish insider activity and a weak technical trend suggest limited immediate upside.

Strengths
Superior ROE (13.66%) compared to the utility sector average (0.23%)
Strong revenue growth (23.90% YoY) indicating successful scale or rate adjustments
Healthy profit margins (15.18%) and operating margins (29.63%)
Risks
Significant overvaluation relative to deterministic fair value models
Negative earnings growth (-7.60% YoY) despite rising revenues
Liquidity concerns with a Current Ratio of 0.83 and Quick Ratio of 0.43

Compare Another Pair

AQN vs NJR: Head-to-Head Comparison

This page compares Algonquin Power & Utilities Corp. (AQN) and New Jersey Resources Corporation (NJR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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