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

Institutional and Insider Ownership

84.3% of Pinnacle West Capital Corporation shares are owned by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.7% of Pinnacle West Capital Corporation 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Pinnacle West Capital Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 3.0%. Pinnacle West Capital Corporation pays out 58.0% 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 101.1% of their earnings in the form of a dividend. Pinnacle West Capital Corporation has raised its dividend for 5 consecutive years.

Profitability

This table compares Pinnacle West Capital Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle West Capital Corporation 14.37% 10.20% 3.14%
Pinnacle West Capital Corporation Competitors -10.85% 3.46% 0.48%

Risk & Volatility

Pinnacle West Capital Corporation has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Pinnacle West Capital Corporation’s rivals have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Pinnacle West Capital Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle West Capital Corporation 1 9 0 0 1.90
Pinnacle West Capital Corporation Competitors 528 2931 2357 41 2.33

Pinnacle West Capital Corporation currently has a consensus target price of $85.00, suggesting a potential downside of 3.09%. As a group, “Electric Utilities” companies have a potential upside of 6.51%. Given Pinnacle West Capital Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Pinnacle West Capital Corporation has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Pinnacle West Capital Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Pinnacle West Capital Corporation $3.53 billion $1.53 billion 19.40
Pinnacle West Capital Corporation Competitors $7.30 billion $2.15 billion 29.82

Pinnacle West Capital Corporation’s rivals have higher revenue and earnings than Pinnacle West Capital Corporation. Pinnacle West Capital 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.

Summary

Pinnacle West Capital Corporation rivals beat Pinnacle West Capital Corporation on 10 of the 15 factors compared.

About Pinnacle West Capital Corporation

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

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