Pinnacle West Capital Corporation (NYSE: PNW) is one of 85 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare Pinnacle West Capital Corporation to related businesses based on the strength of its dividends, profitability, risk, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pinnacle West Capital Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle West Capital Corporation 1 9 0 0 1.90
Pinnacle West Capital Corporation Competitors 512 2896 2326 41 2.33

Pinnacle West Capital Corporation currently has a consensus price target of $84.00, indicating a potential downside of 5.16%. As a group, “Electric Utilities” companies have a potential upside of 5.91%. Given Pinnacle West Capital Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Pinnacle West Capital Corporation has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Pinnacle West Capital Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Pinnacle West Capital Corporation $3.53 billion $1.53 billion 19.60
Pinnacle West Capital Corporation Competitors $7.19 billion $2.12 billion 30.68

Pinnacle West Capital Corporation’s peers have higher revenue and earnings than Pinnacle West Capital Corporation. Pinnacle West Capital 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.

Institutional & Insider Ownership

84.2% of Pinnacle West Capital Corporation shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.7% of Pinnacle West Capital Corporation shares are owned by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Pinnacle West Capital Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 3.0%. Pinnacle West Capital Corporation pays out 58.0% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.1% and pay out 103.7% of their earnings in the form of a dividend. Pinnacle West Capital Corporation has increased its dividend for 5 consecutive years.

Profitability

This table compares Pinnacle West Capital Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle West Capital Corporation 14.37% 10.20% 3.14%
Pinnacle West Capital Corporation Competitors -10.56% 3.45% 0.55%

Risk & Volatility

Pinnacle West Capital Corporation has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Pinnacle West Capital Corporation’s peers have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.

Summary

Pinnacle West Capital Corporation peers beat Pinnacle West Capital Corporation on 10 of the 15 factors compared.

Pinnacle West Capital Corporation Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

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