Critical Contrast: PPL Corporation (PPL) and Its Rivals
PPL Corporation (NYSE: PPL) is one of 21 public companies in the “Multiline Utilities” industry, but how does it compare to its peers? We will compare PPL Corporation to related companies based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, institutional ownership and risk.
Institutional & Insider Ownership
71.0% of PPL Corporation shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 0.4% of PPL Corporation shares are held by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for PPL Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PPL Corporation Competitors||362||1061||830||9||2.21|
PPL Corporation presently has a consensus target price of $38.36, indicating a potential downside of 0.29%. As a group, “Multiline Utilities” companies have a potential upside of 6.99%. Given PPL Corporation’s peers higher probable upside, analysts plainly believe PPL Corporation has less favorable growth aspects than its peers.
PPL Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.1%. PPL Corporation pays out 66.1% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend. PPL Corporation has raised its dividend for 5 consecutive years. PPL Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Risk and Volatility
PPL Corporation has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, PPL Corporation’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.
Valuation and Earnings
This table compares PPL Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|PPL Corporation||$7.40 billion||$4.04 billion||16.10|
|PPL Corporation Competitors||$8.16 billion||$2.17 billion||20.52|
PPL Corporation’s peers have higher revenue, but lower earnings than PPL Corporation. PPL Corporation 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.
This table compares PPL Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PPL Corporation Competitors||8.68%||8.64%||1.99%|
PPL Corporation beats its peers on 8 of the 15 factors compared.
About PPL Corporation
PPL Corporation (PPL) is a utility holding company. Through its subsidiaries, PPL delivers electricity to customers in the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee; delivers natural gas to customers in Kentucky, and generates electricity from power plants in Kentucky. PPL operates through U.K. Regulated Segment, Kentucky Regulated Segment and Pennsylvania Regulated Segment. The U.K. Regulated Segment consists of PPL Global, which includes PPL WPD Limited’s (WPD) regulated electricity distribution operations, the results of hedging the translation of WPD’s earnings from British pound sterling into United States dollars, and certain costs, such as the United States income taxes, administrative costs and allocated financing costs. Kentucky Regulated segment consists of the operations of Louisville Gas and Electric Company (LG&E) and KU Energy LLC (LKE). The Pennsylvania Regulated segment consists of PPL Electric Utilities Corporation (PPL Electric).
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