Head to Head Analysis: Pennon Group (PEGRF) versus Its Rivals

Pennon Group (OTCMKTS:PEGRF) is one of 38 publicly-traded companies in the “Water Utilities” industry, but how does it compare to its peers? We will compare Pennon Group to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Profitability

This table compares Pennon Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pennon Group	N/A	N/A	N/A
Pennon Group Competitors	0.31%	-0.85%	1.78%

Insider & Institutional Ownership

44.0% of Pennon Group shares are held by institutional investors. Comparatively, 57.7% of shares of all “Water Utilities” companies are held by institutional investors. 7.7% of shares of all “Water Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Pennon Group pays an annual dividend of $0.30 per share and has a dividend yield of 4.9%. Pennon Group pays out 104.5% 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, “Water Utilities” companies pay a dividend yield of 4.2% and pay out 84.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Pennon Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pennon Group	N/A	N/A	21.47
Pennon Group Competitors	$4.33 billion	$270.20 million	14.19

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

Analyst Ratings

This is a summary of recent recommendations for Pennon Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pennon Group	0	1	4	0	2.80
Pennon Group Competitors	404	1213	1008	29	2.25

As a group, “Water Utilities” companies have a potential upside of 93.14%. Given Pennon Group’s peers higher possible upside, analysts plainly believe Pennon Group has less favorable growth aspects than its peers.

Summary

Pennon Group peers beat Pennon Group on 8 of the 13 factors compared.

Pennon Group Company Profile

Pennon Group Plc provides clean water and wastewater services in the United Kingdom. It provides water and wastewater services for customers in Cornwall, Devon, and parts of Dorset and Somerset; water-only services in the areas of Dorset, Hampshire, and Wiltshire; and water and wastewater retail services to non-household customers in Great Britain. The company also offers regulated water to approximately 1.2 million customers in the Bristol region. Pennon Group Plc was incorporated in 1989 and is based in Exeter, the United Kingdom.