Financial Analysis: Avangrid (AGR) and Its Rivals

Avangrid (NYSE: AGR) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it compare to its competitors? We will compare Avangrid to similar companies based on the strength of its profitability, dividends, risk, earnings, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares Avangrid and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avangrid 11.25% 4.52% 2.20%
Avangrid Competitors 8.42% 8.94% 2.33%

Dividends

Avangrid pays an annual dividend of $1.73 per share and has a dividend yield of 3.6%. Avangrid pays out 79.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend.

Risk and Volatility

Avangrid has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Avangrid’s competitors have a beta of 0.60, meaning that their average stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Avangrid and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avangrid 0 0 4 0 3.00
Avangrid Competitors 317 958 819 6 2.24

Avangrid presently has a consensus price target of $46.17, suggesting a potential downside of 3.09%. As a group, “Multiline Utilities” companies have a potential upside of 10.88%. Given Avangrid’s competitors higher possible upside, analysts clearly believe Avangrid has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Avangrid and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Avangrid $6.00 billion $1.94 billion 21.85
Avangrid Competitors $7.70 billion $2.04 billion 20.47

Avangrid’s competitors have higher revenue and earnings than Avangrid. Avangrid is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

13.2% of Avangrid shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.3% of Avangrid shares are owned by company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Avangrid competitors beat Avangrid on 10 of the 15 factors compared.

Avangrid Company Profile

Avangrid, Inc. is an energy and utility company. The Company operates through three segments: Networks, Renewables and Gas. The Networks segment includes all the energy transmission and distribution activities, and any other regulated activity originating in New York and Maine, and regulated electric distribution, electric transmission and gas distribution activities originating in Connecticut and Massachusetts. The Renewables segment owns, develops, constructs and/or operates electricity generation, including renewable and thermal generators, and associated transmission facilities. The Renewables segment includes activities relating to renewable energy, mainly wind energy generation and trading related with such activities. The Gas segment operates a natural gas storage and natural gas trading business through its subsidiaries, Enstor, Inc. and Enstor Energy Services, LLC.

Receive News & Ratings for Avangrid Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avangrid Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply