Pepco (NYSE: POM) is one of 80 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare Pepco to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, dividends and risk.

Insider and Institutional Ownership

65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 2.7% of shares of all “Electric Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pepco and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pepco 0 0 0 0 N/A
Pepco Competitors 532 2961 2378 43 2.33

As a group, “Electric Utilities” companies have a potential upside of 6.60%. Given Pepco’s competitors higher possible upside, analysts clearly believe Pepco has less favorable growth aspects than its competitors.

Profitability

This table compares Pepco and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pepco 10.52% 11.08% 2.95%
Pepco Competitors -9.94% 9.72% 2.67%

Dividends

Pepco pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. Pepco pays out 86.4% 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 3.1% and pay out 99.7% of their earnings in the form of a dividend. Pepco is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Pepco and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pepco N/A N/A 21.54
Pepco Competitors $7.47 billion $828.04 million 47.11

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

Summary

Pepco beats its competitors on 5 of the 9 factors compared.

About Pepco

Pepco Holdings LLC, formerly Pepco Holdings, Inc., is a holding company. The Company, through its utility subsidiaries, is engaged in the transmission, distribution and default supply of electricity, and the distribution and supply of natural gas. The Company’s segments include Power Delivery, Pepco Energy Services, and Corporate and Other. The Company’s subsidiaries include Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Pepco is engaged in the transmission, distribution and default supply of electricity. DPL is involved in the transmission, distribution and default supply of electricity, and distribution and supply of natural gas. ACE is engaged in the transmission, distribution and default supply of electricity. The Company’s subsidiaries own and operate a network of wires, substations and other equipment that are classified as transmission facilities, distribution facilities or common facilities.

Receive News & Stock Ratings for Pepco Holdings LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pepco Holdings LLC and related stocks with our FREE daily email newsletter.