El Paso Electric (NYSE: EE) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare El Paso Electric to related businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
98.1% of El Paso Electric shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.3% of El Paso Electric shares are owned by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
El Paso Electric pays an annual dividend of $1.34 per share and has a dividend yield of 2.3%. El Paso Electric pays out 48.4% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.1% and pay out 103.7% of their earnings in the form of a dividend. El Paso Electric has raised its dividend for 5 consecutive years.
This is a breakdown of recent recommendations for El Paso Electric and its peers, as provided by MarketBeat.
El Paso Electric presently has a consensus target price of $55.75, suggesting a potential downside of 3.55%. As a group, “Electric Utilities” companies have a potential upside of 7.67%. Given El Paso Electric’s peers stronger consensus rating and higher possible upside, analysts plainly believe El Paso Electric has less favorable growth aspects than its peers.
This table compares El Paso Electric and its peers’ net margins, return on equity and return on assets.
Valuation & Earnings
This table compares El Paso Electric and its peers gross revenue, earnings per share (EPS) and valuation.
El Paso Electric’s peers have higher revenue and earnings than El Paso Electric. El Paso Electric is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
El Paso Electric has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, El Paso Electric’s peers have a beta of 0.70, suggesting that their average share price is 30% less volatile than the S&P 500.
El Paso Electric peers beat El Paso Electric on 10 of the 15 factors compared.
About El Paso Electric
El Paso Electric Company is a public utility company. As of December 31, 2016, the Company was engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. As of December 31, 2016, the Company owned or had ownership interests in several electrical generating facilities providing it with a generating capability of approximately 2,080 megawatts (MW). The Company’s energy sources consists of nuclear fuel, natural gas, coal, purchased power and generated by Company-owned solar photovoltaic panels. As of December 31, 2016, the Company had power purchase agreements for 107 MW from solar photovoltaic generation facilities. As of December 31, 2016, the Company served approximately 411,100 residential, commercial, industrial, public authority and wholesale customers. The Company distributes electricity to retail customers principally in El Paso, Texas and Las Cruces, New Mexico.