Head-To-Head Review: Southern (SO) and PG&E (PCG)
Southern (NYSE: SO) and PG&E (NYSE:PCG) are both large-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Earnings & Valuation
This table compares Southern and PG&E’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southern||$23.03 billion||1.93||$2.49 billion||$0.81||54.41|
|PG&E||$17.14 billion||1.24||$1.66 billion||$3.49||11.79|
Volatility and Risk
Southern has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, PG&E has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.
Southern pays an annual dividend of $2.32 per share and has a dividend yield of 5.3%. PG&E pays an annual dividend of $2.12 per share and has a dividend yield of 5.2%. Southern pays out 286.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PG&E pays out 60.7% of its earnings in the form of a dividend. Southern has increased its dividend for 2 consecutive years and PG&E has increased its dividend for 16 consecutive years.
Insider & Institutional Ownership
53.9% of Southern shares are owned by institutional investors. Comparatively, 82.2% of PG&E shares are owned by institutional investors. 1.0% of Southern shares are owned by company insiders. Comparatively, 0.2% of PG&E shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Southern and PG&E’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Southern and PG&E, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Southern currently has a consensus target price of $49.58, suggesting a potential upside of 12.50%. PG&E has a consensus target price of $58.05, suggesting a potential upside of 41.10%. Given PG&E’s stronger consensus rating and higher possible upside, analysts clearly believe PG&E is more favorable than Southern.
Southern beats PG&E on 9 of the 16 factors compared between the two stocks.
The Southern Company (Southern Company) is a holding company. The Company owns all of the stock of the traditional electric operating companies and the parent entities of Southern Power Company (Southern Power) and Southern Company Gas, and owns other direct and indirect subsidiaries. The Company’s segments include Gas distribution operations, Gas marketing services, Wholesale gas services, Gas midstream operations and All other. The Gas distribution operations segment includes natural gas local distribution utilities that construct, manage, and maintain intrastate natural gas pipelines and gas distribution facilities in seven states. The Gas marketing services segment provides natural gas commodity and related services to customers markets that provide for customer choice. The Wholesale gas services segment engages in natural gas storage and gas pipeline arbitrage. The Gas midstream operations consist primarily of gas pipeline investments, with storage and fuels.
PG&E Corporation is a holding company. The Company’s primary operating subsidiary is Pacific Gas and Electric Company (the Utility), which operates in northern and central California. The Utility is engaged in the sale and delivery of electricity and natural gas to customers. The Utility generates electricity and provides electricity transmission and distribution services throughout its service territory in northern and central California to residential, commercial, industrial, and agricultural customers. The Utility provides bundled services (electricity, transmission and distribution services) to various customers in its service territory. As of December 31, 2016, the Utility owned approximately 18,400 circuit miles of interconnected transmission lines operating at voltages ranging from 60 kilovolt to 500 kilovolt. As of December 31, 2016, the Utility also operated 92 electric transmission substations with a capacity of approximately 64,600 megavolt ampere (MVA).
Receive News & Ratings for Southern Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southern and related companies with MarketBeat.com's FREE daily email newsletter.