Pepco Holdings (NYSE: POM) and Portland General Electric (NYSE:POR) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitabiliy.

Analyst Recommendations

This is a breakdown of recent ratings for Pepco Holdings and Portland General Electric, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pepco Holdings 0 0 0 0 N/A
Portland General Electric 4 2 0 0 1.33

Portland General Electric has a consensus target price of $42.00, indicating a potential downside of 7.61%. Given Portland General Electric’s higher possible upside, analysts clearly believe Portland General Electric is more favorable than Pepco Holdings.

Valuation and Earnings

This table compares Pepco Holdings and Portland General Electric’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pepco Holdings N/A N/A N/A N/A N/A
Portland General Electric $1.99 billion 2.03 $687.00 million $2.24 20.29

Portland General Electric has higher revenue and earnings than Pepco Holdings.

Profitability

This table compares Pepco Holdings and Portland General Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pepco Holdings 10.52% 11.08% 2.95%
Portland General Electric 10.06% 8.48% 2.64%

Dividends

Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 3.0%. Pepco Holdings does not pay a dividend. Portland General Electric pays out 60.7% of its earnings in the form of a dividend. Portland General Electric has raised its dividend for 11 consecutive years.

Institutional & Insider Ownership

95.2% of Portland General Electric shares are owned by institutional investors. 0.6% 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 company is poised for long-term growth.

Summary

Portland General Electric beats Pepco Holdings on 6 of the 11 factors compared between the two stocks.

Pepco Holdings Company Profile

Pepco Holdings LLC, formerly Pepco Holdings, Inc., is a holding company. The Company, through its utility subsidiaries, is engaged in the transmission, distribution and default supply of electricity, and the distribution and supply of natural gas. The Company’s segments include Power Delivery, Pepco Energy Services, and Corporate and Other. The Company’s subsidiaries include Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Pepco is engaged in the transmission, distribution and default supply of electricity. DPL is involved in the transmission, distribution and default supply of electricity, and distribution and supply of natural gas. ACE is engaged in the transmission, distribution and default supply of electricity. The Company’s subsidiaries own and operate a network of wires, substations and other equipment that are classified as transmission facilities, distribution facilities or common facilities.

Portland General Electric 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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