Pennon Group (PEGRF) and Its Peers Financial Analysis

Pennon Group (OTCMKTS:PEGRF) is one of 38 public companies in the “Water Utilities” industry, but how does it compare to its rivals? We will compare Pennon Group to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Institutional & Insider Ownership

44.0% of Pennon Group shares are held by institutional investors. Comparatively, 57.7% of shares of all “Water Utilities” companies are held by institutional investors. 7.7% of shares of all “Water Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Pennon Group pays an annual dividend of $0.30 per share and has a dividend yield of 4.6%. Pennon Group pays out 104.5% 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, “Water Utilities” companies pay a dividend yield of 4.3% and pay out 84.2% of their earnings in the form of a dividend.

Profitability

This table compares Pennon Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pennon Group	N/A	N/A	N/A
Pennon Group Competitors	4.68%	3.14%	1.99%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Pennon Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pennon Group	0	1	4	0	2.80
Pennon Group Competitors	401	1199	1004	29	2.25

As a group, “Water Utilities” companies have a potential upside of 96.97%. Given Pennon Group’s rivals higher probable upside, analysts plainly believe Pennon Group has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Pennon Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pennon Group	N/A	N/A	22.72
Pennon Group Competitors	$4.33 billion	$270.20 million	14.86

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

Summary

Pennon Group rivals beat Pennon Group on 9 of the 13 factors compared.

About Pennon Group

Pennon Group Plc provides clean water and wastewater services in the United Kingdom. It provides water and wastewater services for customers in Cornwall, Devon, and parts of Dorset and Somerset; water-only services in the areas of Dorset, Hampshire, and Wiltshire; and water and wastewater retail services to non-household customers in Great Britain. The company also offers regulated water to approximately 1.2 million customers in the Bristol region. Pennon Group Plc was incorporated in 1989 and is based in Exeter, the United Kingdom.