CENTRICA PLC/S (OTCMKTS:CPYYY) and El Paso Electric (NYSE:EE) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
This is a summary of recent ratings and recommmendations for CENTRICA PLC/S and El Paso Electric, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Paso Electric||0||3||0||0||2.00|
This table compares CENTRICA PLC/S and El Paso Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Paso Electric||9.33%||8.83%||2.84%|
Volatility and Risk
CENTRICA PLC/S has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, El Paso Electric has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Institutional & Insider Ownership
0.1% of CENTRICA PLC/S shares are owned by institutional investors. Comparatively, 95.1% of El Paso Electric shares are owned by institutional investors. 1.2% of El Paso Electric shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares CENTRICA PLC/S and El Paso Electric’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CENTRICA PLC/S||$39.62 billion||0.19||$244.27 million||$0.59||9.31|
|El Paso Electric||$903.60 million||2.66||$84.32 million||$2.33||25.28|
CENTRICA PLC/S has higher revenue and earnings than El Paso Electric. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than El Paso Electric, indicating that it is currently the more affordable of the two stocks.
CENTRICA PLC/S pays an annual dividend of $0.35 per share and has a dividend yield of 6.4%. El Paso Electric pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. CENTRICA PLC/S pays out 59.3% of its earnings in the form of a dividend. El Paso Electric pays out 61.8% 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. El Paso Electric has raised its dividend for 7 consecutive years. CENTRICA PLC/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
El Paso Electric beats CENTRICA PLC/S on 11 of the 15 factors compared between the two stocks.
About CENTRICA PLC/S
Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, Exploration & Production, and Centrica Storage segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it is involved in the trade and optimization of energy activities; provision of vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides intermediary services, including claims handling and administration, as well as business, finance, and data management services; and offers sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.
About El Paso Electric
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,085 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 425,000 residential, commercial, industrial, public authority, and wholesale customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
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