Great Plains Energy (NYSE: GXP) and Entergy (NYSE:ETR) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
87.1% of Great Plains Energy shares are owned by institutional investors. Comparatively, 83.0% of Entergy shares are owned by institutional investors. 0.4% of Great Plains Energy shares are owned by company insiders. Comparatively, 0.2% of Entergy shares 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.
Great Plains Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.2%. Entergy pays an annual dividend of $3.56 per share and has a dividend yield of 4.2%. Great Plains Energy pays out 550.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Entergy pays out -72.1% of its earnings in the form of a dividend. Great Plains Energy has raised its dividend for 6 consecutive years and Entergy has raised its dividend for 2 consecutive years. Entergy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Great Plains Energy has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Entergy has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Great Plains Energy and Entergy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Plains Energy||0||3||4||0||2.57|
Great Plains Energy presently has a consensus price target of $32.20, suggesting a potential downside of 6.23%. Entergy has a consensus price target of $82.42, suggesting a potential downside of 3.63%. Given Entergy’s higher possible upside, analysts plainly believe Entergy is more favorable than Great Plains Energy.
This table compares Great Plains Energy and Entergy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Plains Energy||3.42%||5.41%||1.83%|
Earnings & Valuation
This table compares Great Plains Energy and Entergy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Great Plains Energy||$2.68 billion||2.77||$290.00 million||$0.20||171.71|
|Entergy||$10.85 billion||1.42||-$564.50 million||($4.94)||-17.31|
Great Plains Energy has higher earnings, but lower revenue than Entergy. Entergy is trading at a lower price-to-earnings ratio than Great Plains Energy, indicating that it is currently the more affordable of the two stocks.
Great Plains Energy beats Entergy on 9 of the 16 factors compared between the two stocks.
Great Plains Energy Company Profile
Great Plains Energy Incorporated (Great Plains Energy) is a utility holding company. The Company operates through electric utility segment. The Company’s subsidiaries with operations include Kansas City Power & Light Company (KCP&L) and KCP&L Greater Missouri Operations Company (GMO). KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. Kansas City Power & Light Receivables Company (KCP&L Receivables Company) is the KCP&L’s subsidiary. GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO’s subsidiaries include GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant). As of December 31, 2016, electric utility had approximately 6,500 megawatts (MWs) of owned generating capacity.
Entergy Company Profile
Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.
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