Avista Corporation (NYSE: AVA) is one of 21 public companies in the “Multiline Utilities” industry, but how does it compare to its competitors? We will compare Avista Corporation to similar companies based on the strength of its dividends, risk, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Dividends

Avista Corporation pays an annual dividend of $1.43 per share and has a dividend yield of 2.8%. Avista Corporation pays out 67.8% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.0% and pay out 71.1% of their earnings in the form of a dividend. Avista Corporation has raised its dividend for 14 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Avista Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avista Corporation 1 3 0 0 1.75
Avista Corporation Competitors 361 1059 829 9 2.22

Avista Corporation currently has a consensus target price of $44.00, suggesting a potential downside of 14.61%. As a group, “Multiline Utilities” companies have a potential upside of 6.45%. Given Avista Corporation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Avista Corporation has less favorable growth aspects than its competitors.

Profitability

This table compares Avista Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avista Corporation 9.35% 8.19% 2.57%
Avista Corporation Competitors 8.68% 8.64% 1.99%

Earnings and Valuation

This table compares Avista Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Avista Corporation $1.46 billion $471.76 million 24.42
Avista Corporation Competitors $8.13 billion $2.16 billion 20.84

Avista Corporation’s competitors have higher revenue and earnings than Avista Corporation. Avista Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Avista Corporation has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Avista Corporation’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

69.7% of Avista Corporation shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 1.1% of Avista Corporation shares are owned by company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Avista Corporation competitors beat Avista Corporation on 10 of the 15 factors compared.

Avista Corporation Company Profile

Avista Corporation is an electric and natural gas utility company. The Company operates through two segments: Avista Utilities, and Alaska Electric Light and Power Company (AEL&P). The Company’s regional services include government and higher education, medical services, retail trade and finance. The Company’s businesses also include sheet metal fabrication, venture fund investments, real estate investments, a company that explores markets that could be served with liquefied natural gas (LNG), as well as certain other investments of Avista Capital, which is a subsidiary of the Company. Avista Utilities is an operating division of the Company, which consists of its regulated utility operations in the Pacific Northwest. Avista Utilities division generates, transmits and distributes electricity, and distributes natural gas. As of December 31, 2016, AEL&P operated five hydroelectric generation facilities with 102.7 megawatts (MW) of hydroelectric generation capacity.

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