Comparing NiSource (NI) & Its Peers

NiSource (NYSE:NI) is one of 52 public companies in the “Multi – Utilities” industry, but how does it weigh in compared to its rivals? We will compare NiSource to similar companies based on the strength of its profitability, valuation, risk, earnings, dividends, institutional ownership and analyst recommendations.

Risk and Volatility

NiSource has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, NiSource’s rivals have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares NiSource and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NiSource	$6.64 billion	$929.50 million	23.04
NiSource Competitors	$16.08 billion	$269.64 million	27.88

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

Profitability

This table compares NiSource and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NiSource	13.56%	8.16%	2.60%
NiSource Competitors	8.89%	14.85%	4.08%

Insider & Institutional Ownership

91.6% of NiSource shares are held by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are held by institutional investors. 0.4% of NiSource shares are held by company insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

NiSource pays an annual dividend of $1.20 per share and has a dividend yield of 2.7%. NiSource pays out 61.5% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.3% and pay out 33.6% of their earnings in the form of a dividend. NiSource has raised its dividend for 14 consecutive years. NiSource lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for NiSource and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NiSource	0	1	12	0	2.92
NiSource Competitors	1051	4109	4427	86	2.37

NiSource presently has a consensus target price of $48.58, suggesting a potential upside of 8.11%. As a group, “Multi – Utilities” companies have a potential upside of 28.42%. Given NiSource’s rivals higher possible upside, analysts clearly believe NiSource has less favorable growth aspects than its rivals.

Summary

NiSource rivals beat NiSource on 10 of the 15 factors compared.

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.