Pattern Energy Group (NASDAQ: PEGI) and Portland General Electric (NYSE:POR) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
This table compares Pattern Energy Group and Portland General Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pattern Energy Group||-4.35%||0.34%||0.16%|
|Portland General Electric||9.31%||8.50%||2.64%|
Pattern Energy Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Institutional & Insider Ownership
96.6% of Pattern Energy Group shares are held by institutional investors. Comparatively, 92.8% of Portland General Electric shares are held by institutional investors. 1.6% of Pattern Energy Group shares are held by insiders. Comparatively, 0.6% of Portland General Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Pattern Energy Group and Portland General Electric, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pattern Energy Group||0||5||7||0||2.58|
|Portland General Electric||3||5||1||0||1.78|
Pattern Energy Group presently has a consensus price target of $22.96, suggesting a potential upside of 33.79%. Portland General Electric has a consensus price target of $41.50, suggesting a potential upside of 3.21%. Given Pattern Energy Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pattern Energy Group is more favorable than Portland General Electric.
Valuation and Earnings
This table compares Pattern Energy Group and Portland General Electric’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pattern Energy Group||$411.34 million||4.08||-$17.90 million||$0.19||90.32|
|Portland General Electric||$2.01 billion||1.78||$187.00 million||$2.29||17.56|
Portland General Electric has higher revenue and earnings than Pattern Energy Group. Portland General Electric is trading at a lower price-to-earnings ratio than Pattern Energy Group, indicating that it is currently the more affordable of the two stocks.
Pattern Energy Group pays an annual dividend of $1.69 per share and has a dividend yield of 9.8%. Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 3.4%. Pattern Energy Group pays out 889.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric pays out 59.4% of its earnings in the form of a dividend. Portland General Electric has increased its dividend for 12 consecutive years.
Pattern Energy Group beats Portland General Electric on 9 of the 17 factors compared between the two stocks.
Pattern Energy Group Company Profile
Pattern Energy Group Inc. is an independent power company focused on owning and operating power projects. The Company holds interests in over 18 wind power projects located in the United States, Canada and Chile with total capacity of over 2,644 megawatts (MW). Each of its projects has contracted to sell its output pursuant to a power sale agreement. The Company sells its electricity and environmental attributes, including renewable energy credits (RECs), to local utilities under long-term and fixed-price power purchase agreements (PPAs). The Company’s operating projects are Gulf Wind, Texas; Hatchet Ridge, California; St. Joseph, Manitoba; Spring Valley, Nevada; Santa Isabel, Puerto Rico; Ocotillo, California; South Kent, Ontario; El Arrayan, Chile; Panhandle 1, Texas; Panhandle 2, Texas; Grand, Ontario; Post Rock, Kansas; Lost Creek, Missouri; K2, Ontario; Logan’s Gap, Texas, Amazon Wind Farm Fowler Ridge, Indiana, and Armow Wind power facility in Ontario, Canada.
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, 2017, it owned an electric transmission system consisting of 1,250 circuit miles, including 287 circuit miles of 500 kilovolt line, 402 circuit miles of 230 kilovolt line, and 561 miles of 115 kilovolt line. It has 27,457 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 875,000 residential, commercial, and industrial customers in the Portland/Salem metropolitan area of Oregon. The company was founded in 1930 and is headquartered in Portland, Oregon.
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