Head-To-Head Analysis: Atlantica Yield (NASDAQ:AY) & Its Rivals

Atlantica Yield (NASDAQ: AY) is one of 79 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare Atlantica Yield to related companies based on the strength of its analyst recommendations, institutional ownership, earnings, dividends, valuation, risk and profitability.

Profitability

This table compares Atlantica Yield and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantica Yield 2.85% 1.41% 0.27%
Atlantica Yield Competitors -15.34% 8.88% 2.47%

Institutional and Insider Ownership

51.0% of Atlantica Yield shares are owned by institutional investors. Comparatively, 66.4% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.1% of shares of all “Electric Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Atlantica Yield pays an annual dividend of $1.16 per share and has a dividend yield of 5.5%. Atlantica Yield pays out 414.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.5% and pay out 98.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Atlantica Yield and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantica Yield 0 1 3 0 2.75
Atlantica Yield Competitors 578 3006 2393 43 2.32

Atlantica Yield currently has a consensus target price of $23.75, suggesting a potential upside of 12.72%. As a group, “Electric Utilities” companies have a potential upside of 13.72%. Given Atlantica Yield’s competitors higher probable upside, analysts plainly believe Atlantica Yield has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Atlantica Yield and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atlantica Yield $971.80 million -$4.85 million 75.25
Atlantica Yield Competitors $8.06 billion $880.90 million 60.91

Atlantica Yield’s competitors have higher revenue and earnings than Atlantica Yield. Atlantica Yield is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Atlantica Yield has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Atlantica Yield’s competitors have a beta of 0.68, suggesting that their average share price is 32% less volatile than the S&P 500.

Summary

Atlantica Yield competitors beat Atlantica Yield on 9 of the 15 factors compared.

Atlantica Yield Company Profile

Atlantica Yield plc, formerly Abengoa Yield plc, is a total return company. The Company owns, manages, and acquires renewable energy, conventional power, electric transmission lines and water assets, focused on North America (the United States and Mexico), South America (Peru, Chile, Brazil and Uruguay) and Europe, Middle East and Africa (Spain, Algeria and South Africa). Its segments include North America, South America and EMEA. It operates in business sectors, including renewable energy, conventional power, electric transmission lines and water. As of December 31, 2016, it owned or had interests in 21 assets, comprising 1,442 megawatt (MW) of renewable energy generation, 300 MW of conventional power generation, 1,099 miles of electric transmission lines, as well as an exchangeable preferred equity investment in Abengoa Concessoes Brasil Holding S.A., (ACBH). The renewable energy sector includes its activities related to the production electricity from solar power and wind plants.

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