RE:RE:ALA vs. CPXWithout taking into account that one is a utility and the other is an infrastructure power producer, let's try and see which one represents better value...
PE ratio based on normalized earnings: ALA = 13.5 vs CPX = 28.1
Cashflows multiple per share: ALA = 5.37 vs CPX = 6.92
Portion of cashflows used to pay dividends: ALA = 32% vs CPX = 41%
These are the ratios right now, Altagas ratios used to be a lot worse before they cut the dividend and changed management. Between the two companies, Altagas generates better earnings and cashflows per share which in theory should lead to better share price appreciation. However, since their activities are different, it is possible that the multipliers change over time. Also, this comparison doesn't take into account the risk profile. As a utility, Altagas' risk profile is on the lower end of the spectrum. As a power producer, profitability from investing into the plants isn't guaranteed (like Altagas), so Capital Power Corp carries a higher risk profile. Altagas also has a clear path for increasing substantially earnings and cashflows for the next 3 years. Capital Power Corp doesn't provide a 3 year guidance, but for 2021, they have a guidance for flat cashflows compared to 2020.
Based on 2020 results and 2021 forecast, Altagas should outperform Capital Power Corp. Will they? As I said, it will likely depend on the multipliers applied to each sector.