Head to Head Analysis: Avangrid (AGR) vs. Its Competitors
Avangrid (NYSE: AGR) is one of 21 publicly-traded companies in the “Multiline Utilities” industry, but how does it contrast to its peers? We will compare Avangrid to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Avangrid and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Avangrid||$6.00 billion||$1.94 billion||21.75|
|Avangrid Competitors||$8.13 billion||$2.16 billion||21.00|
Avangrid’s peers have higher revenue and earnings than Avangrid. Avangrid is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Institutional and Insider Ownership
13.2% of Avangrid shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.3% of Avangrid shares are owned by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Avangrid and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Avangrid pays an annual dividend of $1.73 per share and has a dividend yield of 3.6%. Avangrid pays out 79.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
Risk and Volatility
Avangrid has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Avangrid’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.
This is a breakdown of recent ratings for Avangrid and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avangrid presently has a consensus price target of $44.88, indicating a potential downside of 5.36%. As a group, “Multiline Utilities” companies have a potential upside of 5.94%. Given Avangrid’s peers higher possible upside, analysts plainly believe Avangrid has less favorable growth aspects than its peers.
Avangrid peers beat Avangrid on 9 of the 15 factors compared.
Avangrid, Inc. is an energy and utility company. The Company operates through three segments: Networks, Renewables and Gas. The Networks segment includes all the energy transmission and distribution activities, and any other regulated activity originating in New York and Maine, and regulated electric distribution, electric transmission and gas distribution activities originating in Connecticut and Massachusetts. The Renewables segment owns, develops, constructs and/or operates electricity generation, including renewable and thermal generators, and associated transmission facilities. The Renewables segment includes activities relating to renewable energy, mainly wind energy generation and trading related with such activities. The Gas segment operates a natural gas storage and natural gas trading business through its subsidiaries, Enstor, Inc. and Enstor Energy Services, LLC.
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