Financial Review: Otter Tail Corporation (OTTR) and Its Competitors
Otter Tail Corporation (NASDAQ: OTTR) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its rivals? We will compare Otter Tail Corporation to related companies based on the strength of its earnings, risk, valuation, institutional ownership, analyst recommendations, profitability and dividends.
This is a summary of current ratings and price targets for Otter Tail Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Otter Tail Corporation||0||2||1||0||2.33|
|Otter Tail Corporation Competitors||526||2929||2351||41||2.33|
Otter Tail Corporation presently has a consensus target price of $41.00, indicating a potential downside of 10.38%. As a group, “Electric Utilities” companies have a potential upside of 6.63%. Given Otter Tail Corporation’s rivals higher probable upside, analysts clearly believe Otter Tail Corporation has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares Otter Tail Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Otter Tail Corporation||$820.02 million||$191.22 million||26.60|
|Otter Tail Corporation Competitors||$7.31 billion||$2.15 billion||29.65|
Otter Tail Corporation’s rivals have higher revenue and earnings than Otter Tail Corporation. Otter Tail Corporation 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.
This table compares Otter Tail Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Otter Tail Corporation||8.35%||10.14%||3.57%|
|Otter Tail Corporation Competitors||-10.85%||3.46%||0.48%|
Institutional and Insider Ownership
40.5% of Otter Tail Corporation shares are owned by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.4% of Otter Tail Corporation shares are owned by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Otter Tail Corporation has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Otter Tail Corporation’s rivals have a beta of 0.70, indicating that their average share price is 30% less volatile than the S&P 500.
Otter Tail Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Otter Tail Corporation pays out 74.4% 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.
Otter Tail Corporation rivals beat Otter Tail Corporation on 9 of the 15 factors compared.
Otter Tail Corporation Company Profile
Otter Tail Corporation is a holding company. The Company operates through three segments: Electric, Manufacturing and Plastics. The Electric segment includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by Otter Tail Power Company (OTP). The Manufacturing segment consists of businesses in manufacturing activities, such as contract machining, metal parts stamping, fabrication and painting, and production of material and handling trays and horticultural containers. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States. The Plastics segment consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States. The Company’s manufacturing and plastic pipe businesses are owned by its subsidiary, Varistar Corporation.
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