Otter Tail (OTTR) Competitors

Otter Tail (NASDAQ:OTTR) and Pinnacle West Capital (NYSE:PNW) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, media sentiment, analyst recommendations, earnings, institutional ownership and dividends.

Do analysts prefer OTTR or PNW?

Otter Tail currently has a consensus target price of $83.00, suggesting a potential downside of 1.18%. Pinnacle West Capital has a consensus target price of $97.22, suggesting a potential upside of 8.82%. Given Pinnacle West Capital's higher possible upside, analysts clearly believe Pinnacle West Capital is more favorable than Otter Tail.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otter Tail	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00
Pinnacle West Capital	0 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.40

Does the media prefer OTTR or PNW?

In the previous week, Pinnacle West Capital had 11 more articles in the media than Otter Tail. MarketBeat recorded 17 mentions for Pinnacle West Capital and 6 mentions for Otter Tail. Otter Tail's average media sentiment score of 1.74 beat Pinnacle West Capital's score of 1.40 indicating that Otter Tail is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Otter Tail	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Pinnacle West Capital	15 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is OTTR or PNW more profitable?

Otter Tail has a net margin of 21.82% compared to Pinnacle West Capital's net margin of 10.96%. Otter Tail's return on equity of 16.85% beat Pinnacle West Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Otter Tail	21.82%	16.85%	7.80%
Pinnacle West Capital	10.96%	8.45%	2.12%

Is OTTR or PNW a better dividend stock?

Otter Tail pays an annual dividend of $2.10 per share and has a dividend yield of 2.5%. Pinnacle West Capital pays an annual dividend of $3.58 per share and has a dividend yield of 4.0%. Otter Tail pays out 30.9% of its earnings in the form of a dividend. Pinnacle West Capital pays out 73.8% 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. Otter Tail has increased its dividend for 12 consecutive years.

Which has preferable earnings and valuation, OTTR or PNW?

Pinnacle West Capital has higher revenue and earnings than Otter Tail. Otter Tail is trading at a lower price-to-earnings ratio than Pinnacle West Capital, 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
Otter Tail	$1.33B	2.65	$301.66M	$6.80	12.35
Pinnacle West Capital	$5.12B	2.08	$608.81M	$4.85	18.42

Which has more risk & volatility, OTTR or PNW?

Otter Tail has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Do insiders & institutionals have more ownership in OTTR or PNW?

61.3% of Otter Tail shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 1.9% of Otter Tail shares are owned by company insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Otter Tail beats Pinnacle West Capital on 11 of the 19 factors compared between the two stocks.