Head-To-Head Review: Verbund (OEZVY) vs. Its Rivals

Verbund (OTCMKTS:OEZVY) is one of 141 public companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it weigh in compared to its peers? We will compare Verbund to similar companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Verbund	N/A	N/A	N/A
Verbund Competitors	-42.73%	13.91%	0.81%

Dividends

Verbund pays an annual dividend of $0.29 per share and has a dividend yield of 2.1%. Verbund pays out 290.0% 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, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.5% and pay out 425.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Verbund and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verbund	4	0	0	0	1.00
Verbund Competitors	914	2911	3684	176	2.41

As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 143.88%. Given Verbund’s peers stronger consensus rating and higher possible upside, analysts clearly believe Verbund has less favorable growth aspects than its peers.

Institutional and Insider Ownership

35.4% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Verbund and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Verbund	N/A	N/A	140.30
Verbund Competitors	$8.68 billion	$832.74 million	9.71

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

Summary

Verbund peers beat Verbund on 10 of the 13 factors compared.

Verbund Company Profile

VERBUND AG, together with its subsidiaries, generates, trades, and sells electricity to energy exchange markets, traders, electric utilities and industrial companies, and households and commercial customers. It operates through Hydro, New Renewables, Sales, Grid, and All Other segments. The company operates hydropower plants with a capacity of 8,417 megawatts (MW); wind farms with a capacity of 798 MW; solar power with a capacity of 253 MW; and two thermal power plants. It also owns and operates electricity transmission network, and gas transmission pipeline and distribution network in Austria, as well as trades and sells gas. VERBUND AG was founded in 1947 and is headquartered in Vienna, Austria.