Drax Group (DRX) Competitors

Greencoat UK Wind (LON:UKW) and Drax Group (LON:DRX) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, media sentiment, valuation, analyst recommendations and profitability.

Do institutionals & insiders hold more shares of UKW or DRX?

42.2% of Greencoat UK Wind shares are owned by institutional investors. Comparatively, 61.4% of Drax Group shares are owned by institutional investors. 0.0% of Greencoat UK Wind shares are owned by company insiders. Comparatively, 0.9% of Drax Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Which has more risk & volatility, UKW or DRX?

Greencoat UK Wind has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Drax Group has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Do analysts rate UKW or DRX?

Drax Group has a consensus target price of GBX 844.50, indicating a potential upside of 21.60%. Given Drax Group's stronger consensus rating and higher possible upside, analysts clearly believe Drax Group is more favorable than Greencoat UK Wind.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greencoat UK Wind	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Drax Group	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the media favor UKW or DRX?

In the previous week, Greencoat UK Wind had 2 more articles in the media than Drax Group. MarketBeat recorded 4 mentions for Greencoat UK Wind and 2 mentions for Drax Group. Greencoat UK Wind's average media sentiment score of 0.85 beat Drax Group's score of 0.66 indicating that Greencoat UK Wind is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Greencoat UK Wind	2 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Drax Group	2 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, UKW or DRX?

Drax Group has higher revenue and earnings than Greencoat UK Wind. Greencoat UK Wind is trading at a lower price-to-earnings ratio than Drax Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greencoat UK Wind	-£124.62M	-18.82	£77.89M	-£0.06	-1,645.61
Drax Group	£5.65B	0.43	£621.39M	£1.08	644.85

Is UKW or DRX more profitable?

Greencoat UK Wind has a net margin of 29.24% compared to Drax Group's net margin of 9.42%. Drax Group's return on equity of 31.63% beat Greencoat UK Wind's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Greencoat UK Wind	29.24%	2.15%	2.03%
Drax Group	9.42%	31.63%	11.44%

Is UKW or DRX a better dividend stock?

Greencoat UK Wind pays an annual dividend of GBX 0.10 per share and has a dividend yield of 0.1%. Drax Group pays an annual dividend of GBX 0.26 per share and has a dividend yield of 0.0%. Greencoat UK Wind pays out -155.5% of its earnings in the form of a dividend. Drax Group pays out 24.1% 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. Greencoat UK Wind is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Drax Group beats Greencoat UK Wind on 13 of the 18 factors compared between the two stocks.