Avangrid (AGR) versus Portland General Electric (POR) Head to Head Comparison

Avangrid (NYSE:AGR) and Portland General Electric (NYSE:POR) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Avangrid and Portland General Electric, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avangrid 3 4 1 0 1.75
Portland General Electric 1 4 0 0 1.80

Avangrid presently has a consensus price target of $51.43, indicating a potential upside of 3.06%. Portland General Electric has a consensus price target of $45.80, indicating a potential downside of 13.68%. Given Avangrid’s higher possible upside, research analysts plainly believe Avangrid is more favorable than Portland General Electric.

Institutional and Insider Ownership

14.8% of Avangrid shares are held by institutional investors. Comparatively, 96.8% of Portland General Electric shares are held by institutional investors. 0.4% of Avangrid shares are held by insiders. Comparatively, 0.4% of Portland General Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Avangrid and Portland General Electric’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avangrid $6.48 billion 2.38 $595.00 million $2.21 22.58
Portland General Electric $1.99 billion 2.38 $212.00 million $2.37 22.39

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

Dividends

Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. Portland General Electric pays an annual dividend of $1.45 per share and has a dividend yield of 2.7%. Avangrid pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric pays out 61.2% of its earnings in the form of a dividend. Avangrid has increased its dividend for 2 consecutive years and Portland General Electric has increased its dividend for 13 consecutive years.

Volatility & Risk

Avangrid has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Profitability

This table compares Avangrid and Portland General Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avangrid 8.80% 4.27% 2.06%
Portland General Electric 10.67% 8.84% 2.77%

Summary

Portland General Electric beats Avangrid on 10 of the 17 factors compared between the two stocks.

Avangrid Company Profile

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Portland General Electric Company Profile

Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. The company operates seven thermal plants; seven hydroelectric plants; and two wind farms. As of December 31, 2018, it owned an electric transmission system consisting of 1,256 circuit miles, including 287 circuit miles of 500 kilovolt line, 410 circuit miles of 230 kilovolt line, and 561 miles of 115 kilovolt line. It has 27,627 circuit miles of distribution lines. The company also purchases and sells electricity and natural gas in the wholesale market to utilities and power marketers in the United States and Canada. It serves approximately 885,000 residential, commercial, and industrial customers. The company was founded in 1930 and is headquartered in Portland, Oregon.

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