Critical Survey: Chesapeake Utilities Corporation (CPK) versus Questar (STR)
Chesapeake Utilities Corporation (NYSE: CPK) and Questar (NYSE:STR) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, earnings, valuation, dividends, institutional ownership and risk.
Chesapeake Utilities Corporation pays an annual dividend of $1.30 per share and has a dividend yield of 1.7%. Questar pays an annual dividend of $0.88 per share and has a dividend yield of 3.5%. Chesapeake Utilities Corporation pays out 48.0% of its earnings in the form of a dividend. Questar pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chesapeake Utilities Corporation has increased its dividend for 37 consecutive years and Questar has increased its dividend for 13 consecutive years.
Volatility & Risk
Chesapeake Utilities Corporation has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Questar has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Chesapeake Utilities Corporation and Questar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Utilities Corporation||0||4||2||0||2.33|
Chesapeake Utilities Corporation presently has a consensus price target of $70.00, suggesting a potential downside of 6.42%. Questar has a consensus price target of $25.00, suggesting a potential downside of 0.24%. Given Questar’s higher possible upside, analysts plainly believe Questar is more favorable than Chesapeake Utilities Corporation.
Insider & Institutional Ownership
60.0% of Chesapeake Utilities Corporation shares are held by institutional investors. Comparatively, 78.9% of Questar shares are held by institutional investors. 5.4% of Chesapeake Utilities Corporation shares are held by company insiders. Comparatively, 0.4% of Questar shares are held by company 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.
This table compares Chesapeake Utilities Corporation and Questar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Utilities Corporation||8.08%||10.08%||3.69%|
Valuation and Earnings
This table compares Chesapeake Utilities Corporation and Questar’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Utilities Corporation||$537.72 million||2.27||$123.36 million||$2.71||27.60|
Chesapeake Utilities Corporation has higher revenue and earnings than Questar. Questar is trading at a lower price-to-earnings ratio than Chesapeake Utilities Corporation, indicating that it is currently the more affordable of the two stocks.
Chesapeake Utilities Corporation beats Questar on 9 of the 14 factors compared between the two stocks.
Chesapeake Utilities Corporation Company Profile
Chesapeake Utilities Corporation (Chesapeake) is an energy company. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Company provides natural gas distribution and transmission; natural gas supply, gathering, processing and marketing; electric distribution and generation; propane distribution; propane and crude oil wholesale marketing; steam generation, and other energy-related services. The Regulated Energy segment includes the Company’s natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane and crude oil wholesale marketing, natural gas marketing and unregulated natural gas supply, gathering and processing, electricity and steam generation and other unregulated energy-related services to customers.
Questar Company Profile
Dominion Questar Corp, formerly Questar Corporation, is an integrated natural gas holding company. The Company, through its subsidiaries is principally engaged in three lines of business, which include Questar Gas Company (Questar Gas), which provides retail natural gas distribution in Utah, Wyoming and Idaho; Wexpro Company (Wexpro), which develops and produces natural gas from cost-of-service reserves for Questar Gas customers, and Questar Pipeline Company, which operates interstate natural gas pipelines and storage facilities in the western the United States and provides other energy services. The Company is also engaged in Corporate and Other operations, which include Questar Fueling Company (Questar Fueling) that builds, owns and operates compressed natural gas (CNG) fueling stations for fleet operators with medium- and heavy-duty trucks and tractors. Questar Gas distributes gas to customers along the Wasatch Front, Provo, Salt Lake, Ogden and other areas in Utah.
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