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

Analyst Ratings

This is a summary of recent ratings for El Paso Electric and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
El Paso Electric 1 2 1 0 2.00
El Paso Electric Competitors 526 2925 2349 41 2.33

El Paso Electric currently has a consensus price target of $55.50, suggesting a potential downside of 4.31%. As a group, “Electric Utilities” companies have a potential upside of 6.59%. Given El Paso Electric’s peers stronger consensus rating and higher probable upside, analysts plainly believe El Paso Electric has less favorable growth aspects than its peers.

Risk & Volatility

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

Insider and Institutional Ownership

98.2% of El Paso Electric shares are owned by institutional investors. Comparatively, 65.6% 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 large money managers, endowments and hedge funds 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 101.2% of their earnings in the form of a dividend. El Paso Electric has increased its dividend for 5 consecutive years.

Profitability

This table compares El Paso Electric and its peers’ 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 -11.20% 3.31% 0.43%

Earnings & Valuation

This table compares El Paso Electric and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
El Paso Electric $934.44 million $360.31 million 20.94
El Paso Electric Competitors $7.31 billion $2.15 billion 29.65

El Paso Electric’s peers have higher revenue and earnings than El Paso Electric. El Paso Electric 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.

Summary

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

About El Paso Electric

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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