Comparative Analysis of Algonquin and CenterPoint Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2026
0mins
Source: NASDAQ.COM
- Revenue Growth Comparison: Algonquin's revenue for FY 2025 reached nearly $2.4 billion, reflecting a growth rate of approximately 4.9%, while CenterPoint achieved nearly $9.4 billion in revenue, with a year-over-year increase of about 8.3%, indicating CenterPoint's robust market performance.
- Net Income and Profit Margins: Algonquin reported a net income of approximately $208 million, resulting in a net margin of 8.5%, whereas CenterPoint's net income was around $1.1 billion, with a net margin of 11.2%, highlighting CenterPoint's stronger competitive edge in profitability.
- Debt and Liquidity Analysis: Algonquin's debt-to-equity ratio stands at 1.4x with a current ratio of about 1.0x, indicating a reliance on borrowed funds; in contrast, CenterPoint's debt-to-equity ratio is 2.1x with a current ratio of approximately 0.9x, reflecting higher risks associated with its infrastructure investments.
- Market Outlook and Investment Strategy: CenterPoint is strategically positioned in the rapidly growing Houston market, backed by a significant capital investment plan and consistent earnings growth, while Algonquin is in a turnaround phase, focusing on debt reduction and core operations, but still needs time to regain investor confidence.
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Analyst Views on AQN
Wall Street analysts forecast AQN stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 5.580
Low
6.50
Averages
6.75
High
7.50
Current: 5.580
Low
6.50
Averages
6.75
High
7.50
About AQN
Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company is engaged in providing sustainable energy and water solutions through its portfolio of generation, transmission and distribution utility investments to over one million customer connections. The Company's operations are organized across two business units, consisting of: the Regulated Services Group, which primarily owns and operates a portfolio of regulated electric, water distribution and wastewater collection and natural gas utility systems and transmission operations in the United States, Canada, Bermuda and Chile; the Hydro Group, consisting of the hydroelectric business, which is not being sold as a part of the Renewables sale; and the Corporate Group, primarily consisting of corporate debt and corporate and shared services that primarily support the Regulated Services Group and the Hydro Group.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Director Election Results: At the annual meeting of Algonquin Power & Utilities Corp., all nine nominated directors were elected, with Brett Carter receiving 96.62% of the votes, indicating strong shareholder trust and support for the management team.
- Auditor Reappointment: Shareholders voted in favor of reappointing Ernst & Young LLP as the corporation's auditor for the upcoming year, ensuring financial transparency and compliance, which enhances investor confidence.
- Share Unit Plan Amendment: The meeting also approved amendments to the corporation's share unit plan, aimed at improving employee incentive mechanisms to attract and retain key talent, thereby promoting long-term growth.
- Executive Compensation Resolution: The advisory resolution regarding the corporation's executive compensation approach was approved by shareholders, reflecting their recognition of the company's governance structure, which may help enhance the company's reputation and attractiveness in the market.
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- Director Election Results: At the annual meeting on June 29, 2026, all nine nominees for the board of Algonquin Power & Utilities Corp. were elected, with Brett Carter receiving 96.62% of the votes, indicating strong shareholder confidence in the management team.
- Auditor Reappointment: Shareholders unanimously approved the reappointment of Ernst & Young LLP as the corporation's auditor for the upcoming year, ensuring financial transparency and compliance, which enhances investor confidence.
- Share Unit Plan Amendment: The meeting also approved amendments to the corporation's share unit plan, aimed at improving employee incentive mechanisms, thereby attracting and retaining talent to promote long-term growth.
- Executive Compensation Resolution: Shareholders supported an advisory resolution on the corporation's executive compensation approach, reflecting recognition of corporate governance and pay transparency, which helps enhance the company's reputation in the market.
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- Financial Health Comparison: Algonquin's FY 2025 revenue reached nearly $2.4 billion, reflecting a 4.9% year-over-year growth with a net income of approximately $208 million and a net margin of 8.5%, indicating stability in its diversified revenue streams; in contrast, CenterPoint's revenue hit $9.4 billion, an 8.3% increase, with a net income of around $1.1 billion and a net margin of 11.2%, showcasing its robust delivery network in high-demand urban centers.
- Debt and Liquidity Analysis: Algonquin's debt-to-equity ratio stands at 1.4, indicating a moderate reliance on borrowed funds, while CenterPoint's ratio is 2.1, suggesting its liabilities exceed shareholder equity by more than double, with current ratios of 1.0 and 0.9 respectively, highlighting differences in short-term debt coverage.
- Market Risk Assessment: Algonquin faces significant regulatory and operational risks that could impact its net margins and cash flow, whereas CenterPoint's reliance on NRG Energy and Vistra for receivables introduces concentration risk, particularly under adverse weather conditions and regulatory scrutiny.
- Investment Outlook: While Algonquin is undergoing a turnaround and reducing debt, its dividend history raises caution for long-term investors; in contrast, CenterPoint's strong capital investment plan and consistent earnings growth in the rapidly expanding Houston market present a more attractive investment opportunity.
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- Revenue Growth Comparison: Algonquin's revenue for FY 2025 reached nearly $2.4 billion, reflecting a growth rate of approximately 4.9%, while CenterPoint achieved nearly $9.4 billion in revenue, with a year-over-year increase of about 8.3%, indicating CenterPoint's robust market performance.
- Net Income and Profit Margins: Algonquin reported a net income of approximately $208 million, resulting in a net margin of 8.5%, whereas CenterPoint's net income was around $1.1 billion, with a net margin of 11.2%, highlighting CenterPoint's stronger competitive edge in profitability.
- Debt and Liquidity Analysis: Algonquin's debt-to-equity ratio stands at 1.4x with a current ratio of about 1.0x, indicating a reliance on borrowed funds; in contrast, CenterPoint's debt-to-equity ratio is 2.1x with a current ratio of approximately 0.9x, reflecting higher risks associated with its infrastructure investments.
- Market Outlook and Investment Strategy: CenterPoint is strategically positioned in the rapidly growing Houston market, backed by a significant capital investment plan and consistent earnings growth, while Algonquin is in a turnaround phase, focusing on debt reduction and core operations, but still needs time to regain investor confidence.
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- Complete Exit: Callodine Capital fully exited its stake in Algonquin Power & Utilities in Q1 2026, selling 5,749,636 shares for an estimated $37.28 million, indicating a significant loss of confidence in the company.
- Value Decline: The sale resulted in a $35.36 million drop in the value of Callodine's Algonquin position, reflecting the negative impact of both share price movements and the liquidation on its overall portfolio performance.
- Portfolio Restructuring: Following this transaction, Algonquin now represents 0% of Callodine's 13F assets, with major holdings including SPB, VTRS, and WWW, highlighting a significant shift in its investment strategy.
- Company Transformation Impact: After divesting its renewable energy business in 2025, Algonquin repositioned itself as a traditional utility, offering stable returns but limited growth potential, which may no longer align with Callodine's pursuit of high-yield investments.
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- Share Reduction Details: Packer & Co Ltd sold 4,223,557 shares of Algonquin Power & Utilities in Q1 2026, valued at approximately $27.38 million, indicating a waning confidence in the stock, reducing its fund allocation to 0.66%.
- Value Change in Holdings: By the end of the quarter, the remaining stake was 289,556 shares worth about $1.78 million, reflecting a net position decline of $25.98 million due to both trading activities and price fluctuations.
- Company Financial Overview: Algonquin Power & Utilities reported a TTM revenue of $2.51 billion and a net income of $136.10 million, with a dividend yield of 4.39%; despite an 8.8% total return over the past year, it underperformed the S&P 500 by 17.86 percentage points, indicating market pressure.
- Strategic Transformation Goals: The company aims to improve its financial health, reducing net financial debt from over $9 billion to $6.7 billion, with management focused on strengthening the balance sheet while maintaining dividends, highlighting its strategic significance in the transition to sustainable utility infrastructure.
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