Portland General Electric Company (POR) & Eversource Energy (ES) Head-To-Head Analysis

Eversource Energy (NYSE: ES) and Portland General Electric Company (NYSE:POR) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Eversource Energy and Portland General Electric Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eversource Energy 12.45% 8.98% 3.03%
Portland General Electric Company 10.43% 8.78% 2.73%

Insider & Institutional Ownership

71.6% of Eversource Energy shares are owned by institutional investors. Comparatively, 95.1% of Portland General Electric Company shares are owned by institutional investors. 0.5% of Eversource Energy shares are owned by insiders. Comparatively, 0.6% of Portland General Electric Company shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Eversource Energy pays an annual dividend of $1.90 per share and has a dividend yield of 3.0%. Portland General Electric Company pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Eversource Energy pays out 63.1% of its earnings in the form of a dividend. Portland General Electric Company pays out 55.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eversource Energy has raised its dividend for 11 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Eversource Energy and Portland General Electric Company, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eversource Energy 0 5 4 0 2.44
Portland General Electric Company 3 3 0 0 1.50

Eversource Energy presently has a consensus price target of $61.88, suggesting a potential downside of 2.16%. Portland General Electric Company has a consensus price target of $43.00, suggesting a potential downside of 9.99%. Given Eversource Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Eversource Energy is more favorable than Portland General Electric Company.

Valuation and Earnings

This table compares Eversource Energy and Portland General Electric Company’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eversource Energy $7.69 billion 2.61 $2.58 billion $3.01 21.01
Portland General Electric Company $1.97 billion 2.16 $680.00 million $2.30 20.77

Eversource Energy has higher revenue and earnings than Portland General Electric Company. Portland General Electric Company is trading at a lower price-to-earnings ratio than Eversource Energy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Eversource Energy has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Portland General Electric Company has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Summary

Eversource Energy beats Portland General Electric Company on 13 of the 17 factors compared between the two stocks.

Eversource Energy Company Profile

Eversource Energy is a utility holding company engaged in the energy delivery business. The Company operates through three segments: electric distribution, electric transmission and natural gas distribution. The Company’s electric distribution segment consists of the distribution businesses, which are engaged in the distribution of electricity to retail customers in Connecticut, eastern Massachusetts, New Hampshire and western Massachusetts, and the regulated electric generation businesses. Its electric transmission segment owns and maintains transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England. Its electric distribution segment consists of the distribution businesses of The Connecticut Light and Power Company (CL&P), NSTAR Electric Company (NSTAR Electric), Public Service Company of New Hampshire (PSNH) and Western Massachusetts Electric Company (WMECO).

Portland General Electric Company Company Profile

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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