Portland General Electric (NYSE:POR) and The Southern (NYSE:SO) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Volatility and Risk
Portland General Electric has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, The Southern has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.
Profitability
This table compares Portland General Electric and The Southern's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Portland General Electric | 7.67% | 9.97% | 3.02% |
| The Southern | 15.80% | 10.08% | 2.69% |
Insider and Institutional Ownership
91.0% of Portland General Electric shares are owned by institutional investors. Comparatively, 57.6% of The Southern shares are owned by institutional investors. 0.4% of Portland General Electric shares are owned by insiders. Comparatively, 0.4% of The Southern shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Portland General Electric pays an annual dividend of $1.63 per share and has a dividend yield of 3.2%. The Southern pays an annual dividend of $2.56 per share and has a dividend yield of 3.9%. Portland General Electric pays out 68.2% of its earnings in the form of a dividend. The Southern pays out 82.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric has raised its dividend for 14 consecutive years and The Southern has raised its dividend for 19 consecutive years. The Southern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Portland General Electric and The Southern's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Portland General Electric | $2.12 billion | 2.17 | $214 million | $2.39 | 21.53 |
| The Southern | $21.42 billion | 3.27 | $4.75 billion | $3.11 | 21.25 |
The Southern has higher revenue and earnings than Portland General Electric. The Southern is trading at a lower price-to-earnings ratio than Portland General Electric, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Portland General Electric and The Southern, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Portland General Electric | 0 | 5 | 4 | 0 | 2.44 |
| The Southern | 3 | 2 | 8 | 0 | 2.38 |
Portland General Electric presently has a consensus price target of $43.7778, indicating a potential downside of 14.93%. The Southern has a consensus price target of $65.5385, indicating a potential downside of 0.83%. Given The Southern's higher possible upside, analysts plainly believe The Southern is more favorable than Portland General Electric.
Summary
The Southern beats Portland General Electric on 11 of the 17 factors compared between the two stocks.
