Consolidated Edison (NYSE: ED) and Public Service Enterprise Group (NYSE:PEG) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
This is a breakdown of current recommendations and price targets for Consolidated Edison and Public Service Enterprise Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Public Service Enterprise Group||0||6||10||0||2.63|
Volatility and Risk
Consolidated Edison has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Public Service Enterprise Group has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Consolidated Edison pays an annual dividend of $2.86 per share and has a dividend yield of 3.8%. Public Service Enterprise Group pays an annual dividend of $1.80 per share and has a dividend yield of 3.7%. Consolidated Edison pays out 13.0% of its earnings in the form of a dividend. Public Service Enterprise Group pays out 110.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Consolidated Edison has raised its dividend for 43 consecutive years and Public Service Enterprise Group has raised its dividend for 6 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Consolidated Edison and Public Service Enterprise Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Public Service Enterprise Group||17.33%||11.25%||3.63%|
Institutional and Insider Ownership
56.8% of Consolidated Edison shares are held by institutional investors. Comparatively, 68.4% of Public Service Enterprise Group shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by company insiders. Comparatively, 0.6% of Public Service Enterprise Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Consolidated Edison and Public Service Enterprise Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Consolidated Edison||$12.03 billion||1.96||$1.53 billion||$21.95||3.46|
|Public Service Enterprise Group||$9.08 billion||2.69||$1.57 billion||$1.63||29.72|
Public Service Enterprise Group has lower revenue, but higher earnings than Consolidated Edison. Consolidated Edison is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.
Public Service Enterprise Group beats Consolidated Edison on 11 of the 17 factors compared between the two stocks.
About Consolidated Edison
Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.
About Public Service Enterprise Group
Public Service Enterprise Group Incorporated (PSEG) is a holding company. The Company is an energy company with operations located primarily in the Northeastern and Mid-Atlantic United States. The Company’s segments include Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and Other. PSEG is engaged in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is also the provider of last resort for gas and electric commodity service for end users in its service territory. Power is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through energy sales in energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal subsidiaries. In addition, Power owns and operates solar generation in various states.
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