Black Hills Corporation (NYSE: BKH) 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 Black Hills Corporation to related companies based on the strength of its earnings, institutional ownership, valuation, risk, analyst recommendations, dividends and profitability.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Hills Corporation 0 0 5 0 3.00
Black Hills Corporation Competitors 361 1059 829 9 2.22

Black Hills Corporation currently has a consensus price target of $73.40, indicating a potential upside of 5.41%. As a group, “Multiline Utilities” companies have a potential upside of 5.66%. Given Black Hills Corporation’s rivals higher possible upside, analysts clearly believe Black Hills Corporation has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Black Hills Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Black Hills Corporation $1.70 billion $588.78 million 29.26
Black Hills Corporation Competitors $8.13 billion $2.16 billion 21.06

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

Institutional and Insider Ownership

94.0% of Black Hills Corporation shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Multiline Utilities” companies are owned by institutional investors. 1.1% of Black Hills 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.

Dividends

Black Hills Corporation pays an annual dividend of $1.78 per share and has a dividend yield of 2.6%. Black Hills Corporation pays out 74.8% 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. Black Hills Corporation has raised its dividend for 47 consecutive years. Black Hills Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Black Hills Corporation has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Black Hills Corporation’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Black Hills Corporation 7.71% 10.48% 2.84%
Black Hills Corporation Competitors 8.68% 8.64% 1.99%

Summary

Black Hills Corporation rivals beat Black Hills Corporation on 9 of the 15 factors compared.

About Black Hills Corporation

Black Hills Corporation is a holding company. The Company is an integrated energy company, which is focused primarily on regulated utilities. The Company operates through segments, including Electric Utilities, Gas Utilities, Power Generation, Mining, Oil and Gas, and Corporate. As of December 31, 2016, the Electric Utilities segment generated, transmitted and distributed electricity to approximately 208,500 customers in South Dakota, Wyoming, Colorado and Montana. The Gas Utilities Segment includes the natural gas operations of Cheyenne Light. The Power Generation segment produces electric power from its generating plants and sells the electric capacity and energy principally to its utilities under long-term contracts. The Mining segment operates through its Wyodak Resources Development Corp. (WRDC) subsidiary. The Company’s Oil and Gas segment acquires, explores for, develops and produces natural gas and crude oil in the United States primarily in the Rocky Mountain region.

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