CenterPoint Energy (NYSE: CNP) is one of 21 publicly-traded companies in the “Multiline Utilities” industry, but how does it compare to its peers? We will compare CenterPoint Energy to similar companies based off the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

76.9% of CenterPoint Energy shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.2% of CenterPoint Energy shares are owned by company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

CenterPoint Energy has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, CenterPoint Energy’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CenterPoint Energy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CenterPoint Energy 0 7 1 0 2.13
CenterPoint Energy Competitors 360 1059 827 9 2.22

CenterPoint Energy presently has a consensus target price of $27.71, indicating a potential downside of 8.98%. All “Multiline Utilities” companies have a potential upside of 4.26%. Given CenterPoint Energy’s peers stronger consensus rating and higher possible upside, analysts clearly believe CenterPoint Energy has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares CenterPoint Energy and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CenterPoint Energy $8.85 billion $2.08 billion 21.91
CenterPoint Energy Competitors $8.13 billion $2.16 billion 21.33

CenterPoint Energy has higher revenue, but lower earnings than its peers. CenterPoint Energy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.

Profitability

This table compares CenterPoint Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CenterPoint Energy 6.86% 16.45% 2.65%
CenterPoint Energy Competitors 8.68% 8.64% 1.99%

Dividends

CenterPoint Energy pays an annual dividend of $1.07 per share and has a dividend yield of 3.5%. CenterPoint Energy pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Multiline Utilities” companies pay a dividend yield of 3.0% and pay out 71.1% of their earnings in the form of a dividend. CenterPoint Energy has raised its dividend for 11 consecutive years.

Summary

CenterPoint Energy peers beat CenterPoint Energy on 8 of the 15 factors compared.

CenterPoint Energy Company Profile

CenterPoint Energy, Inc. is a public utility holding company. The Company, through its subsidiaries, owns and operates electric transmission and distribution facilities, and natural gas distribution facilities. The Electric Transmission & Distribution segment provides electric transmission and distribution services to retail electric providers. Its Natural Gas Distribution segment offers intrastate natural gas sales to and natural gas transportation and distribution for residential, commercial and industrial customers. Its Energy Services segment includes non-rate regulated gas sales and transportation and storage services for commercial and industrial customers. Its Midstream Investments segment includes equity investment in Enable that owns, operates and develops natural gas and crude oil assets. Its Other Operations segment includes office buildings and other real estate used in its business operations and other corporate operations.

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