PPL Corporation (NYSE: PPL) is one of 21 publicly-traded companies in the “Multiline Utilities” industry, but how does it weigh in compared to its rivals? We will compare PPL Corporation to related companies based on the strength of its earnings, institutional ownership, valuation, risk, analyst recommendations, dividends and profitability.

Institutional and Insider Ownership

71.0% of PPL Corporation shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.4% of PPL Corporation 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 company is poised for long-term growth.

Profitability

This table compares PPL Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PPL Corporation 22.08% 15.96% 4.16%
PPL Corporation Competitors 8.68% 8.64% 1.99%

Dividends

PPL Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.1%. PPL Corporation pays out 66.1% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.0% and pay out 71.1% of their earnings in the form of a dividend. PPL Corporation has raised its dividend for 5 consecutive years. PPL Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for PPL Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PPL Corporation 0 5 3 0 2.38
PPL Corporation Competitors 361 1059 829 9 2.22

PPL Corporation currently has a consensus price target of $38.36, indicating a potential downside of 1.19%. As a group, “Multiline Utilities” companies have a potential upside of 6.04%. Given PPL Corporation’s rivals higher possible upside, analysts clearly believe PPL Corporation has less favorable growth aspects than its rivals.

Risk and Volatility

PPL Corporation has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, PPL Corporation’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares PPL Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PPL Corporation $7.40 billion $4.04 billion 16.24
PPL Corporation Competitors $8.13 billion $2.16 billion 20.89

PPL Corporation’s rivals have higher revenue, but lower earnings than PPL Corporation. PPL Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

PPL Corporation beats its rivals on 9 of the 15 factors compared.

PPL Corporation Company Profile

PPL Corporation (PPL) is a utility holding company. Through its subsidiaries, PPL delivers electricity to customers in the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee; delivers natural gas to customers in Kentucky, and generates electricity from power plants in Kentucky. PPL operates through U.K. Regulated Segment, Kentucky Regulated Segment and Pennsylvania Regulated Segment. The U.K. Regulated Segment consists of PPL Global, which includes PPL WPD Limited’s (WPD) regulated electricity distribution operations, the results of hedging the translation of WPD’s earnings from British pound sterling into United States dollars, and certain costs, such as the United States income taxes, administrative costs and allocated financing costs. Kentucky Regulated segment consists of the operations of Louisville Gas and Electric Company (LG&E) and KU Energy LLC (LKE). The Pennsylvania Regulated segment consists of PPL Electric Utilities Corporation (PPL Electric).

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