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

Insider & Institutional Ownership

76.9% of CenterPoint Energy shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.2% of CenterPoint Energy 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CenterPoint Energy and its rivals’ 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%

Earnings and Valuation

This table compares CenterPoint Energy and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CenterPoint Energy $8.85 billion $2.08 billion 21.01
CenterPoint Energy Competitors $8.16 billion $2.17 billion 20.50

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CenterPoint Energy and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CenterPoint Energy 0 6 1 0 2.14
CenterPoint Energy Competitors 362 1065 833 9 2.22

CenterPoint Energy presently has a consensus target price of $28.43, indicating a potential downside of 2.68%. As a group, “Multiline Utilities” companies have a potential upside of 7.61%. Given CenterPoint Energy’s rivals stronger consensus rating and higher possible upside, analysts plainly believe CenterPoint Energy has less favorable growth aspects than its rivals.

Volatility & Risk

CenterPoint Energy has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, CenterPoint Energy’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Dividends

CenterPoint Energy pays an annual dividend of $1.07 per share and has a dividend yield of 3.7%. 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 3.1% 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 rivals 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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