CEMIG (NYSE:CIG) and Portland General Electric (NYSE:POR) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Earnings & Valuation
This table compares CEMIG and Portland General Electric’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CEMIG||$5.91 billion||0.86||$476.61 million||N/A||N/A|
|Portland General Electric||$1.99 billion||2.49||$212.00 million||$2.37||23.36|
Risk and Volatility
CEMIG has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for CEMIG and Portland General Electric, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Portland General Electric||1||3||0||0||1.75|
Portland General Electric has a consensus price target of $47.67, indicating a potential downside of 13.91%. Given Portland General Electric’s higher probable upside, analysts plainly believe Portland General Electric is more favorable than CEMIG.
Insider and Institutional Ownership
2.4% of CEMIG shares are owned by institutional investors. Comparatively, 93.5% of Portland General Electric shares are owned by institutional investors. 0.4% of Portland General Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
CEMIG pays an annual dividend of $0.09 per share and has a dividend yield of 2.6%. Portland General Electric pays an annual dividend of $1.54 per share and has a dividend yield of 2.8%. Portland General Electric pays out 65.0% of its earnings in the form of a dividend. CEMIG has increased its dividend for 2 consecutive years and Portland General Electric has increased its dividend for 13 consecutive years. Portland General Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares CEMIG and Portland General Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Portland General Electric||9.61%||7.93%||2.50%|
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.
About Portland General Electric
Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. The company operates seven thermal plants; seven hydroelectric plants; and two wind farms. As of December 31, 2018, it owned an electric transmission system consisting of 1,256 circuit miles, including 287 circuit miles of 500 kilovolt line, 410 circuit miles of 230 kilovolt line, and 561 miles of 115 kilovolt line. It has 27,627 circuit miles of distribution lines. The company also purchases and sells electricity and natural gas in the wholesale market to utilities and power marketers in the United States and Canada. It serves approximately 885,000 residential, commercial, and industrial customers. The company was founded in 1930 and is headquartered in Portland, Oregon.
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