DRX vs. PNN, TEP, CNA, UU, SVT, GOOD, IES, ATOM, SAE, and KIBO
Should you be buying Drax Group stock or one of its competitors? The main competitors of Drax Group include Pennon Group (PNN), Telecom Plus (TEP), Centrica (CNA), United Utilities Group (UU), Severn Trent (SVT), Good Energy Group (GOOD), Invinity Energy Systems (IES), Atome (ATOM), SIMEC Atlantis Energy (SAE), and Kibo Energy (KIBO). These companies are all part of the "utilities" sector.
Drax Group (LON:DRX) and Pennon Group (LON:PNN) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, media sentiment, community ranking, dividends, risk and profitability.
Drax Group has higher revenue and earnings than Pennon Group. Pennon Group is trading at a lower price-to-earnings ratio than Drax Group, indicating that it is currently the more affordable of the two stocks.
In the previous week, Pennon Group had 1 more articles in the media than Drax Group. MarketBeat recorded 3 mentions for Pennon Group and 2 mentions for Drax Group. Drax Group's average media sentiment score of 0.07 beat Pennon Group's score of -0.42 indicating that Drax Group is being referred to more favorably in the media.
80.4% of Drax Group shares are held by institutional investors. Comparatively, 61.8% of Pennon Group shares are held by institutional investors. 0.7% of Drax Group shares are held by company insiders. Comparatively, 0.5% of Pennon Group shares 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.
Drax Group pays an annual dividend of GBX 23 per share and has a dividend yield of 4.2%. Pennon Group pays an annual dividend of GBX 44 per share and has a dividend yield of 6.2%. Drax Group pays out 1,654.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pennon Group pays out -73,333.3% of its earnings in the form of a dividend. Pennon Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Drax Group presently has a consensus target price of GBX 873.50, suggesting a potential upside of 57.96%. Pennon Group has a consensus target price of GBX 840, suggesting a potential upside of 17.73%. Given Drax Group's stronger consensus rating and higher probable upside, equities research analysts clearly believe Drax Group is more favorable than Pennon Group.
Drax Group received 105 more outperform votes than Pennon Group when rated by MarketBeat users. Likewise, 65.05% of users gave Drax Group an outperform vote while only 62.01% of users gave Pennon Group an outperform vote.
Drax Group has a net margin of 6.92% compared to Pennon Group's net margin of -2.05%. Drax Group's return on equity of 33.92% beat Pennon Group's return on equity.
Drax Group has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Pennon Group has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Summary
Drax Group beats Pennon Group on 16 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DRX 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 LON 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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