AEE vs. FE, ETR, PCG, SRE, D, PEG, ED, WEC, DTE, and CNP
Should you be buying Ameren stock or one of its competitors? The main competitors of Ameren include FirstEnergy (FE), Entergy (ETR), PG&E (PCG), Sempra (SRE), Dominion Energy (D), Public Service Enterprise Group (PEG), Consolidated Edison (ED), WEC Energy Group (WEC), DTE Energy (DTE), and CenterPoint Energy (CNP). These companies are all part of the "utilities" sector.
Ameren (NYSE:AEE) and FirstEnergy (NYSE:FE) are both large-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, media sentiment, valuation, community ranking, dividends and analyst recommendations.
Ameren currently has a consensus target price of $79.91, indicating a potential upside of 2.38%. FirstEnergy has a consensus target price of $40.55, indicating a potential downside of 0.96%. Given Ameren's higher probable upside, equities analysts clearly believe Ameren is more favorable than FirstEnergy.
In the previous week, FirstEnergy had 3 more articles in the media than Ameren. MarketBeat recorded 18 mentions for FirstEnergy and 15 mentions for Ameren. Ameren's average media sentiment score of 0.83 beat FirstEnergy's score of 0.47 indicating that Ameren is being referred to more favorably in the media.
79.1% of Ameren shares are owned by institutional investors. Comparatively, 89.4% of FirstEnergy shares are owned by institutional investors. 0.4% of Ameren shares are owned by insiders. Comparatively, 0.1% of FirstEnergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
FirstEnergy received 243 more outperform votes than Ameren when rated by MarketBeat users. Likewise, 56.42% of users gave FirstEnergy an outperform vote while only 51.32% of users gave Ameren an outperform vote.
Ameren has higher earnings, but lower revenue than FirstEnergy. Ameren is trading at a lower price-to-earnings ratio than FirstEnergy, indicating that it is currently the more affordable of the two stocks.
Ameren pays an annual dividend of $2.68 per share and has a dividend yield of 3.4%. FirstEnergy pays an annual dividend of $1.70 per share and has a dividend yield of 4.2%. Ameren pays out 61.6% of its earnings in the form of a dividend. FirstEnergy pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Ameren has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.
Ameren has a net margin of 15.84% compared to FirstEnergy's net margin of 8.22%. FirstEnergy's return on equity of 12.45% beat Ameren's return on equity.
Summary
FirstEnergy beats Ameren on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AEE 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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