FTS vs. CEG, AEP, D, VST, EIX, DTE, ETR, FE, PPL, and ES
Should you be buying Fortis stock or one of its competitors? The main competitors of Fortis include Constellation Energy (CEG), American Electric Power (AEP), Dominion Energy (D), Vistra (VST), Edison International (EIX), DTE Energy (DTE), Entergy (ETR), FirstEnergy (FE), PPL (PPL), and Eversource Energy (ES). These companies are all part of the "electric services" industry.
Constellation Energy (NASDAQ:CEG) and Fortis (NYSE:FTS) are both large-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, community ranking, media sentiment, earnings, dividends and profitability.
Constellation Energy presently has a consensus target price of $220.86, suggesting a potential downside of 4.05%. Fortis has a consensus target price of $55.13, suggesting a potential upside of 39.88%. Given Constellation Energy's higher possible upside, analysts clearly believe Fortis is more favorable than Constellation Energy.
Fortis has a net margin of 13.66% compared to Fortis' net margin of 10.25%. Fortis' return on equity of 18.14% beat Constellation Energy's return on equity.
82.2% of Constellation Energy shares are held by institutional investors. Comparatively, 57.8% of Fortis shares are held by institutional investors. 0.2% of Constellation Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Constellation Energy pays an annual dividend of $1.41 per share and has a dividend yield of 0.6%. Fortis pays an annual dividend of $1.71 per share and has a dividend yield of 4.3%. Constellation Energy pays out 18.8% of its earnings in the form of a dividend. Fortis pays out 73.7% 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. Constellation Energy has increased its dividend for 2 consecutive years and Fortis has increased its dividend for 4 consecutive years. Fortis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Fortis received 141 more outperform votes than Constellation Energy when rated by MarketBeat users. However, 62.44% of users gave Constellation Energy an outperform vote while only 53.45% of users gave Fortis an outperform vote.
Constellation Energy has higher revenue and earnings than Fortis. Fortis is trading at a lower price-to-earnings ratio than Constellation Energy, indicating that it is currently the more affordable of the two stocks.
In the previous week, Fortis had 4 more articles in the media than Constellation Energy. MarketBeat recorded 9 mentions for Fortis and 5 mentions for Constellation Energy. Fortis' average media sentiment score of 1.24 beat Constellation Energy's score of 0.72 indicating that Constellation Energy is being referred to more favorably in the media.
Constellation Energy has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Fortis has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.
Summary
Constellation Energy beats Fortis on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FTS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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