Contrasting El Paso Electric (EE) & CENTRICA PLC/S (CPYYY)
El Paso Electric (NYSE:EE) and CENTRICA PLC/S (OTCMKTS:CPYYY) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk and Volatility
El Paso Electric has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, CENTRICA PLC/S has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
96.2% of El Paso Electric shares are held by institutional investors. Comparatively, 0.1% of CENTRICA PLC/S shares are held by institutional investors. 1.3% of El Paso Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
El Paso Electric pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. CENTRICA PLC/S pays an annual dividend of $0.35 per share and has a dividend yield of 6.2%. El Paso Electric pays out 61.8% of its earnings in the form of a dividend. CENTRICA PLC/S pays out 59.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. El Paso Electric has raised its dividend for 7 consecutive years. CENTRICA PLC/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares El Paso Electric and CENTRICA PLC/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Paso Electric||9.33%||8.83%||2.84%|
This is a breakdown of recent recommendations for El Paso Electric and CENTRICA PLC/S, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Paso Electric||0||3||0||0||2.00|
El Paso Electric currently has a consensus price target of $55.33, suggesting a potential downside of 8.25%. Given El Paso Electric’s stronger consensus rating and higher possible upside, equities analysts plainly believe El Paso Electric is more favorable than CENTRICA PLC/S.
Earnings & Valuation
This table compares El Paso Electric and CENTRICA PLC/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|El Paso Electric||$903.60 million||2.72||$84.32 million||$2.33||25.88|
|CENTRICA PLC/S||$39.62 billion||0.20||$244.27 million||$0.59||9.56|
CENTRICA PLC/S has higher revenue and earnings than El Paso Electric. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than El Paso Electric, indicating that it is currently the more affordable of the two stocks.
El Paso Electric beats CENTRICA PLC/S on 12 of the 16 factors compared between the two stocks.
About El Paso Electric
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,085 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 425,000 residential, commercial, industrial, public authority, and wholesale customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
About CENTRICA PLC/S
Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, Exploration & Production, and Centrica Storage segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it is involved in the trade and optimization of energy activities; provision of vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides intermediary services, including claims handling and administration, as well as business, finance, and data management services; and offers sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.
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