Analyzing Pennon Group (PEGRF) and Its Rivals

Pennon Group (OTCMKTS:PEGRF) is one of 38 publicly-traded companies in the “Water Utilities” industry, but how does it compare to its competitors? We will compare Pennon Group to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.

Profitability

This table compares Pennon Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pennon Group	N/A	N/A	N/A
Pennon Group Competitors	0.31%	-0.85%	1.78%

Institutional and Insider Ownership

44.0% of Pennon Group shares are held by institutional investors. Comparatively, 57.7% of shares of all “Water Utilities” companies are held by institutional investors. 7.7% of shares of all “Water Utilities” companies 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pennon Group and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pennon Group	0	1	4	0	2.80
Pennon Group Competitors	403	1213	1008	29	2.25

As a group, “Water Utilities” companies have a potential upside of 94.66%. Given Pennon Group’s competitors higher possible upside, analysts plainly believe Pennon Group has less favorable growth aspects than its competitors.

Dividends

Pennon Group pays an annual dividend of $0.30 per share and has a dividend yield of 4.8%. Pennon Group pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Water Utilities” companies pay a dividend yield of 4.2% and pay out 84.1% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Pennon Group and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pennon Group	N/A	N/A	21.68
Pennon Group Competitors	$4.33 billion	$270.20 million	14.07

Pennon Group’s competitors have higher revenue and earnings than Pennon Group. Pennon Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Pennon Group competitors beat Pennon Group on 8 of the 13 factors compared.

About Pennon Group

Pennon Group Plc provides clean water and wastewater services in the United Kingdom. It provides water and wastewater services for customers in Cornwall, Devon, and parts of Dorset and Somerset; water-only services in the areas of Dorset, Hampshire, and Wiltshire; and water and wastewater retail services to non-household customers in Great Britain. The company also offers regulated water to approximately 1.2 million customers in the Bristol region. Pennon Group Plc was incorporated in 1989 and is based in Exeter, the United Kingdom.