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

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Black Hills Corporation $1.70 billion $588.78 million 28.88
Black Hills Corporation Competitors $8.13 billion $2.16 billion 20.69

Black Hills Corporation’s competitors have higher revenue and earnings than Black Hills Corporation. Black Hills Corporation 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.

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 3.1% and pay out 71.1% of their earnings in the form of a dividend. Black Hills Corporation has increased its dividend for 47 consecutive years. Black Hills Corporation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Black Hills Corporation and its competitors, as reported by MarketBeat.com.

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 1060 829 9 2.22

Black Hills Corporation presently has a consensus price target of $73.40, suggesting a potential upside of 6.79%. As a group, “Multiline Utilities” companies have a potential upside of 6.28%. Given Black Hills Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Black Hills Corporation is more favorable than its competitors.

Institutional & Insider Ownership

93.8% of Black Hills Corporation shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 1.1% of Black Hills Corporation shares are held by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Black Hills Corporation and its competitors’ 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 8.48% 8.46% 1.94%

Summary

Black Hills Corporation beats its competitors on 8 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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