Dynegy (NYSE: DYN) and IDACORP (NYSE:IDA) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Insider & Institutional Ownership

76.0% of IDACORP shares are owned by institutional investors. 1.8% of Dynegy shares are owned by insiders. Comparatively, 0.7% of IDACORP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

IDACORP pays an annual dividend of $2.20 per share and has a dividend yield of 2.5%. Dynegy does not pay a dividend. IDACORP pays out 55.6% of its earnings in the form of a dividend. Dynegy has raised its dividend for 5 consecutive years.

Volatility and Risk

Dynegy has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dynegy and IDACORP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynegy 0 3 2 0 2.40
IDACORP 0 2 0 0 2.00

Dynegy currently has a consensus price target of $11.80, indicating a potential upside of 26.88%. IDACORP has a consensus price target of $75.00, indicating a potential downside of 15.87%. Given Dynegy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Dynegy is more favorable than IDACORP.

Profitability

This table compares Dynegy and IDACORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynegy -2.72% -12.97% -1.80%
IDACORP 15.31% 9.20% 3.20%

Valuation & Earnings

This table compares Dynegy and IDACORP’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dynegy $4.70 billion 0.26 $905.00 million ($1.44) -6.46
IDACORP $1.30 billion 3.46 $438.95 million $3.96 22.51

Dynegy has higher revenue and earnings than IDACORP. Dynegy is trading at a lower price-to-earnings ratio than IDACORP, indicating that it is currently the more affordable of the two stocks.

Summary

Dynegy beats IDACORP on 9 of the 16 factors compared between the two stocks.

Dynegy Company Profile

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

IDACORP Company Profile

IDACORP, Inc. is a holding company. The Company’s principal operating subsidiary is Idaho Power Company (Idaho Power). The Company’s segment is utility operations. The utility operations segment’s primary source of revenue is the regulated operations of Idaho Power. Idaho Power is an electric utility engaged in the generation, transmission, distribution, sale and purchase of electric energy and capacity. Idaho Power is the parent of Idaho Energy Resources Co. (IERCo), a joint venturer in Bridger Coal Company, which mines and supplies coal to the Jim Bridger generating plant owned in part by Idaho Power. Its subsidiaries also include IDACORP Financial Services, Inc., an investor in affordable housing and other real estate investments, and Ida-West Energy Company, an operator of small hydroelectric generation projects. As of December 31, 2016, Idaho Power provided electric utility service to approximately 535,000 general business customers in southern Idaho and eastern Oregon.

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