Korea Electric Power (NYSE: KEP) and Edison International (NYSE:EIX) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Insider & Institutional Ownership
4.7% of Korea Electric Power shares are held by institutional investors. Comparatively, 81.1% of Edison International shares are held by institutional investors. 1.0% of Korea Electric Power shares are held by insiders. Comparatively, 0.4% of Edison International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Korea Electric Power has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Edison International has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Korea Electric Power and Edison International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Korea Electric Power||1||4||2||0||2.14|
Edison International has a consensus target price of $81.92, suggesting a potential upside of 25.58%. Given Edison International’s stronger consensus rating and higher probable upside, analysts plainly believe Edison International is more favorable than Korea Electric Power.
Edison International pays an annual dividend of $2.17 per share and has a dividend yield of 3.3%. Korea Electric Power does not pay a dividend. Edison International pays out 49.5% of its earnings in the form of a dividend. Korea Electric Power has increased its dividend for 12 consecutive years.
This table compares Korea Electric Power and Edison International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Korea Electric Power||5.15%||4.19%||1.72%|
Earnings & Valuation
This table compares Korea Electric Power and Edison International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Korea Electric Power||$51.76 billion||0.44||$6.34 billion||$3.06||5.84|
|Edison International||$11.87 billion||1.79||$1.43 billion||$4.38||14.89|
Korea Electric Power has higher revenue and earnings than Edison International. Korea Electric Power is trading at a lower price-to-earnings ratio than Edison International, indicating that it is currently the more affordable of the two stocks.
Edison International beats Korea Electric Power on 11 of the 17 factors compared between the two stocks.
About Korea Electric Power
Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity. The nuclear power generation segment, which is engaged in the nuclear, hydro, pumping-up power generation. The thermal power generation segment, which is engaged in bituminous coal, anthracite, liquefied natural gas (LNG) power generation. And the Other Segment comprises operations related to the plant design, power generation equipment assembly, nuclear raw materials supplement, electricity IT service, renewable source power generation and financial investment on overseas businesses.
About Edison International
Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc. (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers. SCE’s projects include West of Devers, Mesa Substation, Alberhill System, Riverside Transmission Reliability, Eldorado-Lugo-Mohave Upgrade, Tehachapi and Coolwater-Lugo. As of December 31, 2016, the West of Devers Project consisted of upgrading and reconfiguring approximately 48 miles of existing 220 kilovolt (kV) transmission lines between the Devers, El Casco, Vista and San Bernardino substations.
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