Great Plains Energy (NYSE: GXP) and Portland General Electric (NYSE:POR) are both mid-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
This is a summary of current ratings and target prices for Great Plains Energy and Portland General Electric, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Plains Energy||0||3||4||0||2.57|
|Portland General Electric||3||3||0||0||1.50|
Great Plains Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 3.0%. Great Plains Energy pays out 550.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric pays out 59.1% of its earnings in the form of a dividend. Great Plains Energy has increased its dividend for 6 consecutive years and Portland General Electric has increased its dividend for 11 consecutive years.
Insider & Institutional Ownership
87.1% of Great Plains Energy shares are held by institutional investors. Comparatively, 92.6% of Portland General Electric shares are held by institutional investors. 0.4% of Great Plains Energy shares are held by company insiders. Comparatively, 0.6% of Portland General Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Great Plains Energy and Portland General Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Plains Energy||1.17%||0.26%||0.27%|
|Portland General Electric||7.77%||6.69%||2.08%|
Earnings & Valuation
This table compares Great Plains Energy and Portland General Electric’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Great Plains Energy||$2.68 billion||2.58||$290.00 million||$0.20||160.16|
|Portland General Electric||$1.92 billion||2.10||$193.00 million||$2.30||19.73|
Great Plains Energy has higher revenue and earnings than Portland General Electric. Portland General Electric is trading at a lower price-to-earnings ratio than Great Plains Energy, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Great Plains Energy has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Great Plains Energy beats Portland General Electric on 9 of the 17 factors compared between the two stocks.
About Great Plains Energy
Great Plains Energy Incorporated (Great Plains Energy) is a utility holding company. The Company operates through electric utility segment. The Company’s subsidiaries with operations include Kansas City Power & Light Company (KCP&L) and KCP&L Greater Missouri Operations Company (GMO). KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. Kansas City Power & Light Receivables Company (KCP&L Receivables Company) is the KCP&L’s subsidiary. GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO’s subsidiaries include GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant). As of December 31, 2016, electric utility had approximately 6,500 megawatts (MWs) of owned generating capacity.
About Portland General Electric
Portland General Electric Company is an electric utility that is engaged in the wholesale purchase, transmission, distribution and retail sale of electricity in the State of Oregon. Its service area allocation of approximately 4,000 square miles is located entirely within Oregon and includes approximately 51 incorporated cities, of which Portland and Salem. It has five natural gas-fired generating facilities, which include Port Westward Unit 1 (PW1), Port Westward Unit 2 (PW2), Beaver natural gas-fired generating plant (Beaver), Coyote Springs Unit 1 (Coyote Springs) and Carty natural gas-fired generating plant (Carty). As of December 31, 2016, the Company owned and operated two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River). The Company’s hydroelectric projects consist of Pelton/Round Butte on the Deschutes River near Madras, Oregon, four plants on the Clackamas River, and one on the Willamette River.
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