Portland General Electric (NYSE:POR) and Atlantica Yield (NASDAQ:AY) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
This table compares Portland General Electric and Atlantica Yield’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Portland General Electric||10.65%||8.56%||2.66%|
This is a summary of current ratings and price targets for Portland General Electric and Atlantica Yield, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Portland General Electric||1||4||0||0||1.80|
Portland General Electric currently has a consensus price target of $45.80, suggesting a potential downside of 11.10%. Atlantica Yield has a consensus price target of $25.13, suggesting a potential upside of 24.57%. Given Atlantica Yield’s stronger consensus rating and higher probable upside, analysts clearly believe Atlantica Yield is more favorable than Portland General Electric.
Portland General Electric pays an annual dividend of $1.45 per share and has a dividend yield of 2.8%. Atlantica Yield pays an annual dividend of $1.48 per share and has a dividend yield of 7.3%. Portland General Electric pays out 61.2% of its earnings in the form of a dividend. Atlantica Yield pays out 352.4% 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 has increased its dividend for 13 consecutive years.
Earnings & Valuation
This table compares Portland General Electric and Atlantica Yield’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Portland General Electric||$1.99 billion||2.31||$212.00 million||$2.37||21.74|
|Atlantica Yield||$1.04 billion||1.94||$41.60 million||$0.42||48.02|
Portland General Electric has higher revenue and earnings than Atlantica Yield. Portland General Electric is trading at a lower price-to-earnings ratio than Atlantica Yield, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
97.0% of Portland General Electric shares are owned by institutional investors. Comparatively, 50.7% of Atlantica Yield shares are owned by institutional investors. 0.4% of Portland General Electric shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Portland General Electric has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Atlantica Yield has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Portland General Electric beats Atlantica Yield on 11 of the 17 factors compared between the two stocks.
About Portland General Electric
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.
About Atlantica Yield
Atlantica Yield plc acquires, owns, and manages renewable energy, natural gas power, electric transmission lines, and water assets in the United States, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and South Africa. As of December 31, 2018, it had 24 assets, including 1,496 megawatts (MW) of renewable energy generation assets comprising solar power and wind plants; 300 MW of natural gas power generation assets that produce electricity and steam from natural gas; 1,152 miles of electric transmission lines; and water desalination plants with an aggregate capacity of 10.5 million cubic feet per day. The company was formerly known as Abengoa Yield plc and changed its name to Atlantica Yield plc in May 2016. Atlantica Yield plc was founded in 2013 and is based in Brentford, the United Kingdom.
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