Entergy (NYSE: ETR) and UIL (NYSE:UIL) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
This table compares Entergy and UIL’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Entergy and UIL’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Entergy||$10.85 billion||1.28||-$564.50 million||($4.94)||-15.53|
UIL has lower revenue, but higher earnings than Entergy. Entergy is trading at a lower price-to-earnings ratio than UIL, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Entergy and UIL, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Entergy currently has a consensus price target of $83.62, suggesting a potential upside of 8.99%. Given Entergy’s higher probable upside, equities research analysts plainly believe Entergy is more favorable than UIL.
Institutional and Insider Ownership
82.8% of Entergy shares are held by institutional investors. 0.2% of Entergy shares are held 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.
Entergy pays an annual dividend of $3.56 per share and has a dividend yield of 4.6%. UIL does not pay a dividend. Entergy pays out -72.1% of its earnings in the form of a dividend. Entergy has raised its dividend for 3 consecutive years.
Entergy beats UIL on 10 of the 13 factors compared between the two stocks.
Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.
UIL Holdings Corporation (UIL Holdings) is engaged in the ownership of its operating regulated utility businesses. The utility businesses consist of the electric distribution and transmission operations of The United Illuminating Company (UI) and the natural gas transportation, distribution and sales operations of The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG) and The Berkshire Gas Company. The Company operates in two segments: Electric Distribution and Transmission, which is engaged in purchase, transmission, distribution and sale of electricity for residential, commercial and industrial purposes, and Gas Distribution, which is engaged in natural gas transportation, distribution and sales operations.
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