El Paso Electric (NYSE: EE) is one of 85 public companies in the “Electric Utilities” industry, but how does it compare to its rivals? We will compare El Paso Electric to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

98.0% of El Paso Electric shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.3% of El Paso Electric shares are owned by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

El Paso Electric pays an annual dividend of $1.34 per share and has a dividend yield of 2.3%. El Paso Electric pays out 48.4% 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. El Paso Electric has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares El Paso Electric and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
El Paso Electric $934.44 million $360.31 million 20.67
El Paso Electric Competitors $7.19 billion $2.12 billion 30.83

El Paso Electric’s rivals have higher revenue and earnings than El Paso Electric. El Paso Electric is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for El Paso Electric and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
El Paso Electric 1 2 0 0 1.67
El Paso Electric Competitors 514 2898 2328 41 2.33

El Paso Electric currently has a consensus price target of $53.67, suggesting a potential downside of 6.26%. As a group, “Electric Utilities” companies have a potential upside of 6.50%. Given El Paso Electric’s rivals stronger consensus rating and higher possible upside, analysts clearly believe El Paso Electric has less favorable growth aspects than its rivals.

Profitability

This table compares El Paso Electric and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
El Paso Electric 11.45% 9.95% 3.14%
El Paso Electric Competitors -10.74% 3.51% 0.48%

Volatility & Risk

El Paso Electric has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, El Paso Electric’s rivals have a beta of 0.70, indicating that their average share price is 30% less volatile than the S&P 500.

Summary

El Paso Electric rivals beat El Paso Electric on 10 of the 15 factors compared.

El Paso Electric Company Profile

El Paso Electric Company is a public utility company. As of December 31, 2016, the Company was engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. As of December 31, 2016, the Company owned or had ownership interests in several electrical generating facilities providing it with a generating capability of approximately 2,080 megawatts (MW). The Company’s energy sources consists of nuclear fuel, natural gas, coal, purchased power and generated by Company-owned solar photovoltaic panels. As of December 31, 2016, the Company had power purchase agreements for 107 MW from solar photovoltaic generation facilities. As of December 31, 2016, the Company served approximately 411,100 residential, commercial, industrial, public authority and wholesale customers. The Company distributes electricity to retail customers principally in El Paso, Texas and Las Cruces, New Mexico.

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