Critical Survey: Central Puerto (CEPU) versus The Competition

Central Puerto (NYSE:CEPU) is one of 141 public companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it compare to its competitors? We will compare Central Puerto to related companies based on the strength of its analyst recommendations, risk, profitability, earnings, valuation, dividends and institutional ownership.

Risk and Volatility

Central Puerto has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Central Puerto’s competitors have a beta of 0.62, suggesting that their average stock price is 38% less volatile than the S&P 500.

Dividends

Central Puerto pays an annual dividend of $0.89 per share and has a dividend yield of 8.9%. Central Puerto pays out 29.7% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 230.2% of their earnings in the form of a dividend. Central Puerto is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Central Puerto	$1,699.71 billion	$277.08 million	3.32
Central Puerto Competitors	$35.60 billion	$816.69 million	0.57

Central Puerto has higher revenue, but lower earnings than its competitors. Central Puerto 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.

Insider and Institutional Ownership

3.0% of Central Puerto shares are owned by institutional investors. Comparatively, 35.3% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 0.1% of Central Puerto shares are owned by insiders. Comparatively, 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Central Puerto and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Puerto	29.58%	16.32%	10.91%
Central Puerto Competitors	-33.53%	10.62%	0.86%

Analyst Recommendations

This is a breakdown of current recommendations for Central Puerto and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	1	0	2.50
Central Puerto Competitors	963	2984	3818	188	2.41

Central Puerto currently has a consensus price target of $28.00, indicating a potential upside of 181.12%. As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 144.77%. Given Central Puerto’s stronger consensus rating and higher possible upside, research analysts plainly believe Central Puerto is more favorable than its competitors.

Summary

Central Puerto beats its competitors on 11 of the 15 factors compared.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.