Portland General Electric (NYSE:POR) and Avangrid (NYSE:AGR) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Portland General Electric and Avangrid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Portland General Electric||10.67%||8.84%||2.77%|
This is a breakdown of recent recommendations and price targets for Portland General Electric and Avangrid, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Portland General Electric||1||4||0||0||1.80|
Portland General Electric currently has a consensus target price of $45.80, indicating a potential downside of 14.02%. Avangrid has a consensus target price of $51.43, indicating a potential upside of 2.84%. Given Avangrid’s higher probable upside, analysts plainly believe Avangrid is more favorable than Portland General Electric.
Insider and Institutional Ownership
96.8% of Portland General Electric shares are owned by institutional investors. Comparatively, 14.8% of Avangrid shares are owned by institutional investors. 0.4% of Portland General Electric shares are owned by insiders. Comparatively, 0.4% of Avangrid shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Portland General Electric has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.
Valuation & Earnings
This table compares Portland General Electric and Avangrid’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||$1.99 billion||2.39||$212.00 million||$2.37||22.48|
|Avangrid||$6.48 billion||2.39||$595.00 million||$2.21||22.63|
Avangrid has higher revenue and earnings than Portland General Electric. Portland General Electric is trading at a lower price-to-earnings ratio than Avangrid, indicating that it is currently the more affordable of the two stocks.
Portland General Electric pays an annual dividend of $1.45 per share and has a dividend yield of 2.7%. Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. Portland General Electric pays out 61.2% of its earnings in the form of a dividend. Avangrid pays out 79.6% 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 increased its dividend for 13 consecutive years and Avangrid has increased its dividend for 2 consecutive years.
Portland General Electric beats Avangrid on 10 of the 17 factors compared between the two stocks.
Portland General Electric Company Profile
Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. The company operates seven thermal plants; seven hydroelectric plants; and two wind farms. As of December 31, 2018, it owned an electric transmission system consisting of 1,256 circuit miles, including 287 circuit miles of 500 kilovolt line, 410 circuit miles of 230 kilovolt line, and 561 miles of 115 kilovolt line. It has 27,627 circuit miles of distribution lines. The company also purchases and sells electricity and natural gas in the wholesale market to utilities and power marketers in the United States and Canada. It serves approximately 885,000 residential, commercial, and industrial customers. The company was founded in 1930 and is headquartered in Portland, Oregon.
Avangrid Company Profile
Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.
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