Eversource Energy (NYSE:ES) and Great Plains Energy (NYSE:GXP) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Eversource Energy pays an annual dividend of $2.14 per share and has a dividend yield of 3.0%. Great Plains Energy pays an annual dividend of $0.28 per share. Eversource Energy pays out 65.2% of its earnings in the form of a dividend. Great Plains Energy pays out 16.1% 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 increased its dividend for 3 consecutive years and Great Plains Energy has increased its dividend for 8 consecutive years.
This table compares Eversource Energy and Great Plains Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eversource Energy||$8.45 billion||2.66||$1.03 billion||$3.28||21.62|
|Great Plains Energy||$2.71 billion||0.00||-$106.20 million||$1.74||N/A|
Eversource Energy has higher revenue and earnings than Great Plains Energy. Great Plains Energy is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
73.4% of Eversource Energy shares are owned by institutional investors. 0.5% of Eversource Energy shares are owned by insiders. Comparatively, 0.4% of Great Plains Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Eversource Energy and Great Plains Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Plains Energy||0||0||2||0||3.00|
Eversource Energy presently has a consensus target price of $68.50, suggesting a potential downside of 3.41%. Great Plains Energy has a consensus target price of $34.00, suggesting a potential upside of ?. Given Great Plains Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Great Plains Energy is more favorable than Eversource Energy.
This table compares Eversource Energy and Great Plains Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Plains Energy||N/A||N/A||N/A|
Eversource Energy beats Great Plains Energy on 10 of the 14 factors compared between the two stocks.
About Eversource Energy
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.
About Great Plains Energy
Great Plains Energy Incorporated, through its subsidiaries, generates, transmits, distributes, and sells electricity. It also provides regulated steam services in St. Joseph, Missouri. The company generates electricity using coal, nuclear, natural gas, oil, wind, solar, landfill gas, and hydroelectric resources. It has approximately 6,500 megawatts of generating capacity. The company sells electricity to approximately 867,100 customers in western Missouri and eastern Kansas, including approximately 764,200 residences and 100,400 commercial firms, as well as 2,500 industrials, municipalities, and other electric utilities. Great Plains Energy Incorporated was founded in 1919 and is headquartered in Kansas City, Missouri.
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