DRX vs. PNN, TEP, CNA, UU, GOOD, IES, ATOM, SAE, KIBO, and MAST
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), Good Energy Group (GOOD), Invinity Energy Systems (IES), Atome (ATOM), SIMEC Atlantis Energy (SAE), Kibo Energy (KIBO), and MAST Energy Developments (MAST). These companies are all part of the "utilities" sector.
Drax Group (LON:DRX) and Pennon Group (LON:PNN) are both small-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, institutional ownership, dividends, earnings, profitability, media sentiment and risk.
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 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Pennon Group has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.
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.
Drax Group pays an annual dividend of GBX 23 per share and has a dividend yield of 4.6%. Pennon Group pays an annual dividend of GBX 44 per share and has a dividend yield of 6.8%. Drax Group pays out 1,642.9% 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 received 107 more outperform votes than Pennon Group when rated by MarketBeat users. Likewise, 65.12% of users gave Drax Group an outperform vote while only 61.99% of users gave Pennon Group an outperform vote.
Drax Group presently has a consensus target price of GBX 1,020, indicating a potential upside of 103.43%. Pennon Group has a consensus target price of GBX 980, indicating a potential upside of 51.35%. Given Drax Group's stronger consensus rating and higher probable upside, equities analysts plainly believe Drax Group is more favorable than Pennon Group.
78.5% of Drax Group shares are owned by institutional investors. Comparatively, 56.8% of Pennon Group shares are owned by institutional investors. 0.6% of Drax Group shares are owned by insiders. Comparatively, 0.5% of Pennon Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
In the previous week, Drax Group had 4 more articles in the media than Pennon Group. MarketBeat recorded 6 mentions for Drax Group and 2 mentions for Pennon Group. Pennon Group's average media sentiment score of 0.50 beat Drax Group's score of 0.16 indicating that Pennon Group is being referred to more favorably in the news media.
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.
Skip ChartThis 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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