Dynegy (NYSE: DYN) is one of 86 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Dynegy to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Dynegy and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Dynegy $4.32 billion -$1.24 billion -23.94
Dynegy Competitors $7.77 billion $855.72 million 48.76

Dynegy’s peers have higher revenue and earnings than Dynegy. Dynegy 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.

Profitability

This table compares Dynegy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynegy -0.22% -17.98% -2.46%
Dynegy Competitors -10.90% 3.62% 0.52%

Risk & Volatility

Dynegy has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Dynegy’s peers have a beta of 0.63, indicating that their average stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dynegy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynegy 0 4 5 0 2.56
Dynegy Competitors 530 2939 2362 40 2.33

Dynegy currently has a consensus target price of $13.01, indicating a potential upside of 4.52%. As a group, “Electric Utilities” companies have a potential upside of 6.41%. Given Dynegy’s peers higher possible upside, analysts clearly believe Dynegy has less favorable growth aspects than its peers.

Institutional and Insider Ownership

65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.8% of Dynegy 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Dynegy peers beat Dynegy on 8 of the 12 factors compared.

About Dynegy

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

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