Comparing Cleco Corporate (CNL) and The Competition

Cleco Corporate (NYSE: CNL) is one of 82 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Cleco Corporate to similar companies based on the strength of its earnings, analyst recommendations, institutional ownership, dividends, risk, profitability and valuation.

Dividends

Cleco Corporate pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Cleco Corporate pays out 72.7% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 96.9% of their earnings in the form of a dividend. Cleco Corporate has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Cleco Corporate and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cleco Corporate N/A N/A 25.16
Cleco Corporate Competitors $7.66 billion $831.80 million 46.00

Cleco Corporate’s peers have higher revenue and earnings than Cleco Corporate. Cleco Corporate is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Cleco Corporate and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cleco Corporate 8.24% 5.05% 1.60%
Cleco Corporate Competitors -10.07% 9.20% 2.51%

Volatility and Risk

Cleco Corporate has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Cleco Corporate’s peers have a beta of 0.63, indicating that their average stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Cleco Corporate and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cleco Corporate 0 0 0 0 N/A
Cleco Corporate Competitors 535 2962 2388 42 2.33

As a group, “Electric Utilities” companies have a potential upside of 7.47%. Given Cleco Corporate’s peers higher possible upside, analysts plainly believe Cleco Corporate has less favorable growth aspects than its peers.

Institutional & Insider Ownership

65.7% of shares of all “Electric Utilities” companies are held by institutional investors. 2.7% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cleco Corporate peers beat Cleco Corporate on 8 of the 10 factors compared.

About Cleco Corporate

Cleco Corporate Holdings LLC, formerly Cleco Corporation, is a public utility holding company. The Company’s segments include Cleco Power and Other. Cleco Power is a regulated electric utility company that owns over 10 generating units with a total nameplate capacity of approximately 3,330 megawatts (MW) and serves approximately 287,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. The Company, through its subsidiaries, owns one transmission substation in Louisiana and one transmission substation in Mississippi. Cleco Power is engaged in the generation, transmission, distribution and sale of electricity within Louisiana. It owns natural gas pipelines and interconnections at all of its generating facilities, which allow it to access various natural gas supply markets and maintain an economical fuel supply for its customers. The Company holds investments in its subsidiary, Cleco Power LLC (Cleco Power).

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