IDACORP (NYSE: IDA) and Consolidated Edison (NYSE:ED) are both mid-cap 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDACORP 0 2 0 0 2.00
Consolidated Edison 4 4 0 0 1.50

IDACORP currently has a consensus price target of $75.00, indicating a potential downside of 16.24%. Consolidated Edison has a consensus price target of $77.31, indicating a potential downside of 6.67%. Given Consolidated Edison’s higher possible upside, analysts plainly believe Consolidated Edison is more favorable than IDACORP.

Dividends

IDACORP pays an annual dividend of $2.20 per share and has a dividend yield of 2.5%. Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.3%. IDACORP pays out 55.6% of its earnings in the form of a dividend. Consolidated Edison pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDACORP has raised its dividend for 42 consecutive years and Consolidated Edison has raised its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
IDACORP 15.31% 9.20% 3.20%
Consolidated Edison 10.57% 8.59% 2.56%

Volatility and Risk

IDACORP has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Consolidated Edison has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares IDACORP and Consolidated Edison’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IDACORP $1.30 billion 3.47 $438.95 million $3.96 22.61
Consolidated Edison $11.99 billion 2.14 $3.79 billion $4.14 20.01

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

Insider & Institutional Ownership

76.0% of IDACORP shares are owned by institutional investors. Comparatively, 55.1% of Consolidated Edison shares are owned by institutional investors. 0.7% of IDACORP shares are owned by insiders. Comparatively, 0.2% of Consolidated Edison 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.

Summary

IDACORP beats Consolidated Edison on 11 of the 16 factors compared between the two stocks.

About IDACORP

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.

About Consolidated Edison

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

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