Contrasting Edison International (EIX) and Its Rivals

Edison International (NYSE: EIX) is one of 83 public companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Edison International to related businesses based on the strength of its profitability, institutional ownership, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

Edison International pays an annual dividend of $2.17 per share and has a dividend yield of 2.7%. Edison International pays out 50.8% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 104.0% of their earnings in the form of a dividend. Edison International has raised its dividend for 12 consecutive years.

Institutional and Insider Ownership

81.6% of Edison International shares are held by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are held by institutional investors. 0.4% of Edison International shares are held by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Edison International has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Edison International’s peers have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Edison International and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edison International 0 6 6 0 2.50
Edison International Competitors 692 3227 2433 52 2.29

Edison International currently has a consensus target price of $84.36, suggesting a potential upside of 3.90%. As a group, “Electric Utilities” companies have a potential upside of 5.00%. Given Edison International’s peers higher probable upside, analysts plainly believe Edison International has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Edison International and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Edison International $12.08 billion $4.10 billion 19.02
Edison International Competitors $7.30 billion $2.15 billion 30.93

Edison International has higher revenue and earnings than its peers. Edison International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Edison International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edison International 12.64% 10.58% 2.92%
Edison International Competitors -10.90% 3.28% 0.51%

Summary

Edison International beats its peers on 9 of the 15 factors compared.

Edison International Company Profile

Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc. (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers. SCE’s projects include West of Devers, Mesa Substation, Alberhill System, Riverside Transmission Reliability, Eldorado-Lugo-Mohave Upgrade, Tehachapi and Coolwater-Lugo. As of December 31, 2016, the West of Devers Project consisted of upgrading and reconfiguring approximately 48 miles of existing 220 kilovolt (kV) transmission lines between the Devers, El Casco, Vista and San Bernardino substations.

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