Eversource Energy (ES) versus Korea Electric Power (KEP) Head to Head Analysis

Korea Electric Power (NYSE:KEP) and Eversource Energy (NYSE:ES) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation & Earnings

This table compares Korea Electric Power and Eversource Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Korea Electric Power $55.59 billion 0.35 $1.17 billion $0.95 15.79
Eversource Energy $7.75 billion 2.86 $987.99 million $3.11 22.53

Korea Electric Power has higher revenue and earnings than Eversource Energy. Korea Electric Power is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Korea Electric Power has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Eversource Energy has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Korea Electric Power and Eversource Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korea Electric Power 0 2 3 0 2.60
Eversource Energy 1 4 9 0 2.57

Eversource Energy has a consensus target price of $66.50, suggesting a potential downside of 5.08%. Given Eversource Energy’s higher possible upside, analysts clearly believe Eversource Energy is more favorable than Korea Electric Power.

Dividends

Korea Electric Power pays an annual dividend of $0.29 per share and has a dividend yield of 1.9%. Eversource Energy pays an annual dividend of $2.02 per share and has a dividend yield of 2.9%. Korea Electric Power pays out 30.5% of its earnings in the form of a dividend. Eversource Energy pays out 65.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eversource Energy has raised its dividend for 3 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

4.0% of Korea Electric Power shares are owned by institutional investors. Comparatively, 74.2% of Eversource Energy shares are owned by institutional investors. 1.0% of Korea Electric Power shares are owned by company insiders. Comparatively, 0.5% of Eversource Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Korea Electric Power and Eversource Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korea Electric Power -1.01% -0.66% -0.26%
Eversource Energy 12.51% 9.32% 2.83%

Summary

Eversource Energy beats Korea Electric Power on 12 of the 17 factors compared between the two stocks.

Korea Electric Power Company Profile

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in Korea and internationally. The company operates through Transmission and Distribution, Electric Power Generation (Nuclear), Electric Power Generation (Non-nuclear), Plant Maintenance & Engineering Service, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2017, the company had a total of 679 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,132 megawatts. Its transmission system consisted of 33,955 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 839 substations with an installed transformer capacity of 311,869 megavolt-amperes; and distribution system included 115,945 megavolt-amperes of transformer capacity and 9,287,199 units of support with a total line length of 483,467 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also offers utility plant maintenance and architectural engineering, information, communication line leasing, resources development, and fly ashes recycling services, as well as sells nuclear fuel. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju, South Korea.

Eversource Energy Company Profile

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in three segments: Electric Distribution, Electric Transmission, and Natural Gas Distribution. It is involved in the transmission and distribution of electricity; and distribution of natural gas. The company operates water regulated utilities. It also provides water services to approximately 226,000 customers. It serves residential, commercial, industrial, municipal, fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire, the United States. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts.

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