Contrasting AGL Energy (AGLNF) and The Competition

AGL Energy (OTCMKTS:AGLNF) is one of 141 publicly-traded companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it contrast to its peers? We will compare AGL Energy to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

15.3% of AGL Energy shares are held by institutional investors. Comparatively, 35.4% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares AGL Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGL Energy	N/A	N/A	N/A
AGL Energy Competitors	-45.49%	19.33%	0.82%

Dividends

AGL Energy pays an annual dividend of $0.60 per share and has a dividend yield of 10.9%. AGL Energy pays out 59.2% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.5% and pay out 481.2% of their earnings in the form of a dividend. AGL Energy is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares AGL Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AGL Energy	N/A	N/A	5.44
AGL Energy Competitors	$6.36 billion	$832.84 million	-2.18

AGL Energy’s peers have higher revenue and earnings than AGL Energy. AGL Energy 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.

Analyst Ratings

This is a breakdown of current ratings for AGL Energy and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGL Energy	0	0	2	0	3.00
AGL Energy Competitors	913	2909	3682	176	2.41

As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 144.44%. Given AGL Energy’s peers higher probable upside, analysts clearly believe AGL Energy has less favorable growth aspects than its peers.

Summary

AGL Energy peers beat AGL Energy on 7 of the 13 factors compared.

AGL Energy Company Profile

AGL Energy Limited supplies energy and other essential services to residential, small and large businesses, and wholesale customers in Australia. It operates through three segments: Customer Markets, Integrated Energy, and Investments. The company engages in retailing of electricity, gas, broadband, mobile, voice, solar, and energy products and services; and operates power generation portfolio and other assets including coal, gas and renewable generation, natural gas storage and production, and development projects. It also offers renewable energy schemes; and controls dispatch of owned and contracted generation assets, gas offtake agreements, and associated portfolio of energy hedging products. In addition, the company offers coal and gas-fired generation; and renewable energy sources, such as wind, hydro and solar, batteries and other firming technology; and gas production and storage assets. AGL Energy Limited was founded in 1837 and is based in Sydney, Australia.