Portland General Electric (NYSE: POR) and Dynegy (NYSE:DYN) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
This table compares Portland General Electric and Dynegy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Portland General Electric||10.21%||8.65%||2.70%|
Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. Dynegy does not pay a dividend. Portland General Electric pays out 59.1% of its earnings in the form of a dividend. Dynegy has increased its dividend for 11 consecutive years.
Earnings and Valuation
This table compares Portland General Electric and Dynegy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Portland General Electric||$1.92 billion||2.25||$193.00 million||$2.30||21.14|
|Dynegy||$4.32 billion||0.34||-$1.24 billion||($0.52)||-21.79|
Portland General Electric has higher earnings, but lower revenue than Dynegy. Dynegy is trading at a lower price-to-earnings ratio than Portland General Electric, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
92.6% of Portland General Electric shares are owned by institutional investors. 0.6% of Portland General Electric shares are owned by company insiders. Comparatively, 1.8% of Dynegy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Portland General Electric and Dynegy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Portland General Electric||3||3||0||0||1.50|
Portland General Electric currently has a consensus target price of $44.50, indicating a potential downside of 8.49%. Dynegy has a consensus target price of $13.01, indicating a potential upside of 14.85%. Given Dynegy’s stronger consensus rating and higher probable upside, analysts plainly believe Dynegy is more favorable than Portland General Electric.
Risk & Volatility
Portland General Electric has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Dynegy has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
About Portland General Electric
Portland General Electric Company is an electric utility that is engaged in the wholesale purchase, transmission, distribution and retail sale of electricity in the State of Oregon. Its service area allocation of approximately 4,000 square miles is located entirely within Oregon and includes approximately 51 incorporated cities, of which Portland and Salem. It has five natural gas-fired generating facilities, which include Port Westward Unit 1 (PW1), Port Westward Unit 2 (PW2), Beaver natural gas-fired generating plant (Beaver), Coyote Springs Unit 1 (Coyote Springs) and Carty natural gas-fired generating plant (Carty). As of December 31, 2016, the Company owned and operated two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River). The Company’s hydroelectric projects consist of Pelton/Round Butte on the Deschutes River near Madras, Oregon, four plants on the Clackamas River, and one on the Willamette River.
Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).
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