El Paso Electric (NYSE: EE) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare El Paso Electric to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Risk and Volatility
El Paso Electric has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, El Paso Electric’s peers have a beta of 0.70, suggesting that their average share price is 30% less volatile than the S&P 500.
This is a summary of current ratings and price targets for El Paso Electric and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Paso Electric||0||3||0||0||2.00|
|El Paso Electric Competitors||500||2856||2303||39||2.33|
El Paso Electric currently has a consensus price target of $53.67, suggesting a potential downside of 5.93%. As a group, “Electric Utilities” companies have a potential upside of 7.07%. Given El Paso Electric’s peers stronger consensus rating and higher possible upside, analysts plainly believe El Paso Electric has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares El Paso Electric and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|El Paso Electric||$934.44 million||$360.31 million||20.60|
|El Paso Electric Competitors||$7.19 billion||$2.12 billion||30.43|
El Paso Electric’s peers have higher revenue and earnings than El Paso Electric. El Paso Electric 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.
El Paso Electric pays an annual dividend of $1.34 per share and has a dividend yield of 2.3%. El Paso Electric pays out 48.4% 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 103.7% of their earnings in the form of a dividend. El Paso Electric has raised its dividend for 5 consecutive years.
Insider & Institutional Ownership
98.0% of El Paso Electric shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.3% of El Paso Electric shares are owned by company insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares El Paso Electric and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Paso Electric||11.45%||9.95%||3.14%|
|El Paso Electric Competitors||-10.82%||3.51%||0.54%|
El Paso Electric peers beat El Paso Electric on 10 of the 15 factors compared.
El Paso Electric Company Profile
El Paso Electric Company is a public utility company. As of December 31, 2016, the Company was engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. As of December 31, 2016, the Company owned or had ownership interests in several electrical generating facilities providing it with a generating capability of approximately 2,080 megawatts (MW). The Company’s energy sources consists of nuclear fuel, natural gas, coal, purchased power and generated by Company-owned solar photovoltaic panels. As of December 31, 2016, the Company had power purchase agreements for 107 MW from solar photovoltaic generation facilities. As of December 31, 2016, the Company served approximately 411,100 residential, commercial, industrial, public authority and wholesale customers. The Company distributes electricity to retail customers principally in El Paso, Texas and Las Cruces, New Mexico.
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