Critical Contrast: CenterPoint Energy (CNP) & The Competition
CenterPoint Energy (NYSE: CNP) is one of 22 public companies in the “Multiline Utilities” industry, but how does it contrast to its peers? We will compare CenterPoint Energy to related businesses based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.
CenterPoint Energy pays an annual dividend of $1.07 per share and has a dividend yield of 3.7%. CenterPoint Energy pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. CenterPoint Energy has increased its dividend for 11 consecutive years.
Earnings and Valuation
This table compares CenterPoint Energy and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CenterPoint Energy||$8.85 billion||$2.08 billion||20.91|
|CenterPoint Energy Competitors||$7.70 billion||$2.04 billion||20.60|
CenterPoint Energy has higher revenue and earnings than its peers. CenterPoint Energy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares CenterPoint Energy and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CenterPoint Energy Competitors||8.18%||6.78%||0.93%|
This is a summary of current ratings for CenterPoint Energy and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CenterPoint Energy Competitors||316||957||818||6||2.25|
CenterPoint Energy currently has a consensus price target of $28.43, suggesting a potential downside of 2.17%. As a group, “Multiline Utilities” companies have a potential upside of 10.69%. Given CenterPoint Energy’s peers stronger consensus rating and higher possible upside, analysts clearly believe CenterPoint Energy has less favorable growth aspects than its peers.
Volatility and Risk
CenterPoint Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, CenterPoint Energy’s peers have a beta of 0.60, suggesting that their average stock price is 40% less volatile than the S&P 500.
Insider & Institutional Ownership
76.9% of CenterPoint Energy shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.2% of CenterPoint Energy 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, large money managers and endowments believe a company will outperform the market over the long term.
CenterPoint Energy beats its peers on 8 of the 15 factors compared.
CenterPoint Energy Company Profile
CenterPoint Energy, Inc. is a public utility holding company. The Company, through its subsidiaries, owns and operates electric transmission and distribution facilities, and natural gas distribution facilities. The Electric Transmission & Distribution segment provides electric transmission and distribution services to retail electric providers. Its Natural Gas Distribution segment offers intrastate natural gas sales to and natural gas transportation and distribution for residential, commercial and industrial customers. Its Energy Services segment includes non-rate regulated gas sales and transportation and storage services for commercial and industrial customers. Its Midstream Investments segment includes equity investment in Enable that owns, operates and develops natural gas and crude oil assets. Its Other Operations segment includes office buildings and other real estate used in its business operations and other corporate operations.
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