Consolidated Edison (NYSE: ED) and Portland General Electric (NYSE:POR) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Consolidated Edison and Portland General Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Edison 10.57% 8.59% 2.56%
Portland General Electric 10.06% 8.48% 2.64%

Earnings and Valuation

This table compares Consolidated Edison and Portland General Electric’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Consolidated Edison $11.99 billion 2.15 $3.79 billion $4.14 20.40
Portland General Electric $1.99 billion 2.10 $687.00 million $2.24 20.96

Consolidated Edison has higher revenue and earnings than Portland General Electric. Consolidated Edison is trading at a lower price-to-earnings ratio than Portland General Electric, indicating that it is currently the more affordable of the two stocks.

Dividends

Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.3%. Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 2.9%. Consolidated Edison pays out 66.7% of its earnings in the form of a dividend. Portland General Electric pays out 60.7% 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. Consolidated Edison has increased its dividend for 42 consecutive years and Portland General Electric has increased its dividend for 11 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Consolidated Edison and Portland General Electric, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Edison 3 6 0 0 1.67
Portland General Electric 4 3 0 0 1.43

Consolidated Edison presently has a consensus target price of $76.94, suggesting a potential downside of 8.88%. Portland General Electric has a consensus target price of $42.00, suggesting a potential downside of 10.56%. Given Consolidated Edison’s stronger consensus rating and higher probable upside, research analysts clearly believe Consolidated Edison is more favorable than Portland General Electric.

Risk and Volatility

Consolidated Edison has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Insider and Institutional Ownership

55.1% of Consolidated Edison shares are held by institutional investors. Comparatively, 93.2% of Portland General Electric shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by insiders. Comparatively, 0.6% of Portland General Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Consolidated Edison beats Portland General Electric on 10 of the 16 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

About Portland General Electric

Portland General Electric Company is an electric utility that is engaged in the wholesale purchase, transmission, distribution and retail sale of electricity in the State of Oregon. Its service area allocation of approximately 4,000 square miles is located entirely within Oregon and includes approximately 51 incorporated cities, of which Portland and Salem. It has five natural gas-fired generating facilities, which include Port Westward Unit 1 (PW1), Port Westward Unit 2 (PW2), Beaver natural gas-fired generating plant (Beaver), Coyote Springs Unit 1 (Coyote Springs) and Carty natural gas-fired generating plant (Carty). As of December 31, 2016, the Company owned and operated two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River). The Company’s hydroelectric projects consist of Pelton/Round Butte on the Deschutes River near Madras, Oregon, four plants on the Clackamas River, and one on the Willamette River.

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