Head to Head Comparison: Ameren Corporation (AEE) versus Its Rivals

Ameren Corporation (NYSE: AEE) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it weigh in compared to its rivals? We will compare Ameren Corporation to related businesses based on the strength of its valuation, institutional ownership, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ameren Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ameren Corporation 1 4 0 0 1.80
Ameren Corporation Competitors 328 974 834 6 2.24

Ameren Corporation presently has a consensus target price of $57.00, indicating a potential downside of 7.77%. As a group, “Multiline Utilities” companies have a potential upside of 9.01%. Given Ameren Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Ameren Corporation has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Ameren Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ameren Corporation $6.06 billion $2.44 billion 21.61
Ameren Corporation Competitors $7.70 billion $2.04 billion 21.06

Ameren Corporation’s rivals have higher revenue, but lower earnings than Ameren Corporation. Ameren Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Ameren Corporation pays an annual dividend of $1.76 per share and has a dividend yield of 2.8%. Ameren Corporation pays out 61.5% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.0% and pay out 71.4% of their earnings in the form of a dividend. Ameren Corporation has raised its dividend for 3 consecutive years.

Institutional and Insider Ownership

69.8% of Ameren Corporation shares are held by institutional investors. Comparatively, 66.0% of shares of all “Multiline Utilities” companies are held by institutional investors. 0.4% of Ameren Corporation shares are held by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Ameren Corporation has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Ameren Corporation’s rivals have a beta of 0.60, indicating that their average share price is 40% less volatile than the S&P 500.

Profitability

This table compares Ameren Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ameren Corporation 11.11% 9.57% 2.82%
Ameren Corporation Competitors 8.41% 8.90% 2.32%

Summary

Ameren Corporation rivals beat Ameren Corporation on 8 of the 15 factors compared.

Ameren Corporation Company Profile

Ameren Corporation is a utility holding company. The Company’s subsidiaries include Ameren Missouri, Ameren Illinois and Ameren Transmission Company (ATXI). It operates through four segments. The Ameren Missouri segment includes all of the operations of Ameren Missouri. The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois. The Ameren Illinois Natural Gas segment consists of the natural gas business of Ameren Illinois. The ATXI segment consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas distribution business in Missouri. Ameren Illinois operates rate-regulated electric distribution, electric transmission and natural gas distribution businesses in Illinois. ATXI operates a Federal Energy Regulatory Commission rate-regulated electric transmission business.

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