Contrasting Dynegy (DYN) and Its Competitors

Dynegy (NYSE: DYN) is one of 86 public companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Dynegy to related companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings for Dynegy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynegy 0 4 5 0 2.56
Dynegy Competitors 529 2939 2359 41 2.33

Dynegy currently has a consensus target price of $13.01, suggesting a potential upside of 5.19%. As a group, “Electric Utilities” companies have a potential upside of 6.62%. Given Dynegy’s peers higher probable upside, analysts clearly believe Dynegy has less favorable growth aspects than its peers.

Insider & Institutional Ownership

65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 1.8% of Dynegy shares are owned by company insiders. Comparatively, 2.7% 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 is poised for long-term growth.

Volatility and Risk

Dynegy has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Dynegy’s peers have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Dynegy -0.22% -17.98% -2.46%
Dynegy Competitors -10.63% 0.96% 0.39%

Earnings and Valuation

This table compares Dynegy and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Dynegy $4.32 billion -$1.24 billion -53.78
Dynegy Competitors $7.66 billion $831.80 million 43.76

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

Summary

Dynegy peers beat Dynegy on 8 of the 12 factors compared.

Dynegy Company Profile

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

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