Comparing MDU Resources Group (MDU) and Its Competitors
MDU Resources Group (NYSE: MDU) is one of 21 public companies in the “Multiline Utilities” industry, but how does it weigh in compared to its peers? We will compare MDU Resources Group to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.
Insider & Institutional Ownership
63.6% of MDU Resources Group shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 1.0% of MDU Resources Group 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares MDU Resources Group and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MDU Resources Group||$4.23 billion||$617.43 million||22.60|
|MDU Resources Group Competitors||$8.16 billion||$2.17 billion||20.51|
MDU Resources Group’s peers have higher revenue and earnings than MDU Resources Group. MDU Resources Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
MDU Resources Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, MDU Resources Group’s peers have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.
This is a summary of recent recommendations for MDU Resources Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MDU Resources Group||0||2||1||0||2.33|
|MDU Resources Group Competitors||362||1061||830||9||2.21|
MDU Resources Group presently has a consensus target price of $32.00, suggesting a potential upside of 23.12%. As a group, “Multiline Utilities” companies have a potential upside of 6.72%. Given MDU Resources Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe MDU Resources Group is more favorable than its peers.
MDU Resources Group pays an annual dividend of $0.77 per share and has a dividend yield of 3.0%. MDU Resources Group pays out 67.0% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend. MDU Resources Group has raised its dividend for 7 consecutive years.
This table compares MDU Resources Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MDU Resources Group||5.37%||10.24%||3.76%|
|MDU Resources Group Competitors||8.68%||8.64%||1.99%|
MDU Resources Group peers beat MDU Resources Group on 8 of the 15 factors compared.
About MDU Resources Group
MDU Resources Group, Inc. is engaged in regulated energy delivery and construction materials and services business. The Company’s businesses segments are electric, natural gas distribution, pipeline and midstream, construction materials and contracting, and construction services. The electric segment generates, transmits and distributes electricity. The natural gas distribution segment distributes natural gas. The pipeline and midstream segment provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering. The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, asphalt, liquid asphalt and other value-added products. The construction services segment provides utility construction services in constructing and maintaining electric and communication lines, and external lighting and traffic signalization.
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