Great Plains Energy (NYSE: GXP) is one of 74 public companies in the “Electric Utilities” industry, but how does it contrast to its competitors? We will compare Great Plains Energy to related companies based on the strength of its risk, profitability, analyst recommendations, earnings, valuation, institutional ownership and dividends.

Institutional & Insider Ownership

87.8% of Great Plains Energy shares are owned by institutional investors. Comparatively, 66.4% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.4% of Great Plains Energy shares are owned by insiders. Comparatively, 2.8% of shares of all “Electric 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 Great Plains Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Plains Energy 3.42% 5.41% 1.83%
Great Plains Energy Competitors -13.82% 3.26% 0.28%

Risk and Volatility

Great Plains Energy has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Great Plains Energy’s competitors have a beta of 0.60, suggesting that their average stock price is 40% less volatile than the S&P 500.

Dividends

Great Plains Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.2%. Great Plains Energy pays out 578.9% 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, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 96.9% of their earnings in the form of a dividend. Great Plains Energy has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Great Plains Energy and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Plains Energy 0 3 4 0 2.57
Great Plains Energy Competitors 506 2819 2286 37 2.33

Great Plains Energy presently has a consensus price target of $32.20, suggesting a potential downside of 5.43%. As a group, “Electric Utilities” companies have a potential upside of 7.51%. Given Great Plains Energy’s competitors higher probable upside, analysts plainly believe Great Plains Energy has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Great Plains Energy and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Great Plains Energy $2.68 billion $290.00 million 179.21
Great Plains Energy Competitors $8.16 billion $431.90 million 44.88

Great Plains Energy’s competitors have higher revenue and earnings than Great Plains Energy. Great Plains Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Great Plains Energy competitors beat Great Plains Energy on 8 of the 15 factors compared.

About Great Plains Energy

Great Plains Energy Incorporated (Great Plains Energy) is a utility holding company. The Company operates through electric utility segment. The Company’s subsidiaries with operations include Kansas City Power & Light Company (KCP&L) and KCP&L Greater Missouri Operations Company (GMO). KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. Kansas City Power & Light Receivables Company (KCP&L Receivables Company) is the KCP&L’s subsidiary. GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO’s subsidiaries include GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant). As of December 31, 2016, electric utility had approximately 6,500 megawatts (MWs) of owned generating capacity.

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