Contrasting Ameren Corporation (AEE) and Its Peers
Ameren Corporation (NYSE: AEE) is one of 22 public companies in the “Multiline Utilities” industry, but how does it contrast to its peers? We will compare Ameren Corporation to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.
Ameren Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.9%. Ameren Corporation pays out 61.5% 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. Ameren Corporation has raised its dividend for 3 consecutive years.
Earnings and Valuation
This table compares Ameren Corporation and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ameren Corporation||$6.06 billion||$2.44 billion||20.90|
|Ameren Corporation Competitors||$7.70 billion||$2.04 billion||20.78|
Ameren Corporation’s peers have higher revenue, but lower earnings than Ameren Corporation. Ameren Corporation 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 Ameren Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ameren Corporation Competitors||8.42%||8.94%||2.33%|
This is a breakdown of recent recommendations for Ameren Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ameren Corporation Competitors||319||958||825||6||2.25|
Ameren Corporation presently has a consensus price target of $55.33, suggesting a potential downside of 7.44%. As a group, “Multiline Utilities” companies have a potential upside of 8.19%. Given Ameren Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Ameren Corporation has less favorable growth aspects than its peers.
Volatility and Risk
Ameren Corporation has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Ameren Corporation’s peers have a beta of 0.60, meaning that their average stock price is 40% less volatile than the S&P 500.
Institutional & Insider Ownership
69.8% of Ameren Corporation shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 0.4% of Ameren 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Ameren Corporation peers beat Ameren Corporation on 8 of the 15 factors compared.
About Ameren Corporation
Ameren Corporation is a utility holding company. The Company’s subsidiaries include Ameren Missouri, Ameren Illinois and Ameren Transmission Company (ATXI). It operates through four segments. The Ameren Missouri segment includes all of the operations of Ameren Missouri. The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois. The Ameren Illinois Natural Gas segment consists of the natural gas business of Ameren Illinois. The ATXI segment consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. Ameren Illinois operates rate-regulated electric distribution, electric transmission and natural gas distribution businesses in Illinois. ATXI operates a Federal Energy Regulatory Commission rate-regulated electric transmission business.
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