Public Service Enterprise Group (NYSE: PEG) and SCANA (NYSE:SCG) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
This is a summary of recent recommendations for Public Service Enterprise Group and SCANA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Public Service Enterprise Group||0||6||10||0||2.63|
Risk and Volatility
Public Service Enterprise Group has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, SCANA has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
Public Service Enterprise Group pays an annual dividend of $1.72 per share and has a dividend yield of 3.7%. SCANA pays an annual dividend of $2.45 per share and has a dividend yield of 6.9%. Public Service Enterprise Group pays out 167.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SCANA pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Public Service Enterprise Group has raised its dividend for 18 consecutive years and SCANA has raised its dividend for 6 consecutive years. SCANA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
66.9% of Public Service Enterprise Group shares are held by institutional investors. Comparatively, 68.0% of SCANA shares are held by institutional investors. 0.6% of Public Service Enterprise Group shares are held by insiders. Comparatively, 0.4% of SCANA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Public Service Enterprise Group and SCANA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Public Service Enterprise Group||5.73%||11.33%||3.66%|
Valuation and Earnings
This table compares Public Service Enterprise Group and SCANA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Public Service Enterprise Group||$9.06 billion||2.61||$887.00 million||$1.03||45.37|
|SCANA||$4.23 billion||1.20||$595.00 million||$3.16||11.27|
Public Service Enterprise Group has higher revenue and earnings than SCANA. SCANA is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.
Public Service Enterprise Group beats SCANA on 11 of the 17 factors compared between the two stocks.
Public Service Enterprise Group Company Profile
Public Service Enterprise Group Incorporated (PSEG) is a holding company. The Company is an energy company with operations located primarily in the Northeastern and Mid-Atlantic United States. The Company’s segments include Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and Other. PSEG is engaged in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is also the provider of last resort for gas and electric commodity service for end users in its service territory. Power is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through energy sales in energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal subsidiaries. In addition, Power owns and operates solar generation in various states.
SCANA Company Profile
SCANA Corporation is a holding company. The Company, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity in South Carolina. The Company operates through segments, including Electric Operations, Gas Distribution, Gas Marketing and All Other. The Company is engaged in the purchase, transmission and sale of natural gas in North Carolina and South Carolina. The Electric Operations segment generates, transmits and distributes electricity. The Company’s regulated businesses include subsidiaries, such as South Carolina Electric & Gas Company (SCE&G), South Carolina Fuel Company, Inc. (Fuel Company), South Carolina Generating Company, Inc. (GENCO) and Public Service Company of North Carolina, Incorporated (PSNC Energy). The Company’s nonregulated businesses include subsidiaries, such as SCANA Energy Marketing, Inc. (SCANA Energy), ServiceCare, Inc., SCANA Services, Inc. and SCANA Corporate Security Services, Inc.
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