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

Profitability

This table compares The AES Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The AES Corporation -5.30% 15.86% 2.57%
The AES Corporation Competitors -10.85% 3.46% 0.48%

Risk and Volatility

The AES Corporation has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, The AES Corporation’s competitors have a beta of 0.70, suggesting that their average stock price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares The AES Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The AES Corporation $14.05 billion $3.58 billion -9.46
The AES Corporation Competitors $7.30 billion $2.15 billion 30.02

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

Dividends

The AES Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. The AES Corporation pays out -42.1% 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. The AES Corporation has raised its dividend for 4 consecutive years. The AES Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

93.2% of The AES Corporation shares are held by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are held by institutional investors. 1.1% of The AES Corporation shares are held by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for The AES Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The AES Corporation 0 4 1 0 2.20
The AES Corporation Competitors 525 2923 2348 41 2.33

The AES Corporation presently has a consensus price target of $12.83, suggesting a potential upside of 19.05%. As a group, “Electric Utilities” companies have a potential upside of 6.31%. Given The AES Corporation’s higher probable upside, equities analysts clearly believe The AES Corporation is more favorable than its competitors.

Summary

The AES Corporation beats its competitors on 10 of the 15 factors compared.

The AES Corporation Company Profile

The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. It is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and the Caribbean (MCAC); Europe, and Asia. As of December 31, 2016, its United States SBU had 18 generation facilities and two integrated utilities in the United States. As of December 31, 2016, its Andes SBU had generation facilities in three countries. Its Brazil SBU has generation and distribution businesses, Eletropaulo and Tiete. As of December 31, 2016, its MCAC SBU had a portfolio of distribution businesses and generation facilities, including renewable energy, in five countries. As of December 31, 2016, its Europe SBU had generation facilities in five countries. As of December 31, 2016, its Asia SBU had generation facilities in three countries.

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