Public Service Enterprise Group (NYSE: PEG) and Consolidated Edison (NYSE:ED) are both large-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Institutional & Insider Ownership
68.4% of Public Service Enterprise Group shares are held by institutional investors. Comparatively, 56.7% of Consolidated Edison shares are held by institutional investors. 0.6% of Public Service Enterprise Group shares are held by insiders. Comparatively, 0.2% of Consolidated Edison shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Public Service Enterprise Group pays an annual dividend of $1.80 per share and has a dividend yield of 3.6%. Consolidated Edison pays an annual dividend of $2.86 per share and has a dividend yield of 3.6%. Public Service Enterprise Group pays out 61.4% of its earnings in the form of a dividend. Consolidated Edison pays out 69.9% 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. Public Service Enterprise Group has increased its dividend for 6 consecutive years and Consolidated Edison has increased its dividend for 43 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Public Service Enterprise Group and Consolidated Edison’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%|
Earnings & Valuation
This table compares Public Service Enterprise Group and Consolidated Edison’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Public Service Enterprise Group||$9.08 billion||2.78||$1.57 billion||$2.93||17.10|
|Consolidated Edison||$12.03 billion||2.03||$1.53 billion||$4.09||19.21|
Public Service Enterprise Group has higher earnings, but lower revenue than Consolidated Edison. Public Service Enterprise Group is trading at a lower price-to-earnings ratio than Consolidated Edison, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Public Service Enterprise Group and Consolidated Edison, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Public Service Enterprise Group||0||6||10||0||2.63|
Public Service Enterprise Group presently has a consensus price target of $51.12, indicating a potential upside of 2.03%. Consolidated Edison has a consensus price target of $80.61, indicating a potential upside of 2.61%. Given Consolidated Edison’s higher possible upside, analysts plainly believe Consolidated Edison is more favorable than Public Service Enterprise Group.
Volatility and Risk
Public Service Enterprise Group has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Consolidated Edison has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.
Public Service Enterprise Group beats Consolidated Edison on 11 of the 17 factors compared between the two stocks.
Public Service Enterprise Group Company Profile
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.
Consolidated Edison Company Profile
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.
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