Consolidated Edison (NYSE: ED) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Consolidated Edison to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

55.1% of Consolidated Edison shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Consolidated Edison has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Consolidated Edison’s peers have a beta of 0.70, suggesting that their average share price is 30% less volatile than the S&P 500.

Profitability

This table compares Consolidated Edison and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Edison 10.57% 8.59% 2.56%
Consolidated Edison Competitors -10.28% 3.45% 0.53%

Earnings & Valuation

This table compares Consolidated Edison and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Consolidated Edison $11.99 billion $3.79 billion 20.18
Consolidated Edison Competitors $7.19 billion $2.12 billion 30.73

Consolidated Edison has higher revenue and earnings than its peers. Consolidated Edison is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.3%. Consolidated Edison pays out 66.7% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.1% and pay out 103.7% of their earnings in the form of a dividend. Consolidated Edison has increased its dividend for 42 consecutive years. Consolidated Edison is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for Consolidated Edison and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Edison 4 4 0 0 1.50
Consolidated Edison Competitors 506 2872 2315 41 2.33

Consolidated Edison currently has a consensus target price of $77.31, suggesting a potential downside of 7.44%. As a group, “Electric Utilities” companies have a potential upside of 5.06%. Given Consolidated Edison’s peers stronger consensus rating and higher possible upside, analysts plainly believe Consolidated Edison has less favorable growth aspects than its peers.

Summary

Consolidated Edison peers beat Consolidated Edison on 8 of the 15 factors compared.

Consolidated Edison Company Profile

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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