Reviewing Ameren (AEE) & Its Peers

Ameren (NYSE:AEE) is one of 105 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its rivals? We will compare Ameren to related businesses based on the strength of its dividends, institutional ownership, earnings, analyst recommendations, risk, valuation and profitability.

Dividends

Ameren pays an annual dividend of $3.00 per share and has a dividend yield of 2.7%. Ameren pays out 52.8% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 64.4% of their earnings in the form of a dividend. Ameren has increased its dividend for 12 consecutive years.

Profitability

This table compares Ameren and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameren	17.86%	10.95%	3.00%
Ameren Competitors	14.09%	9.63%	3.19%

Analyst Ratings

This is a breakdown of recent ratings for Ameren and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameren	0	5	11	0	2.69
Ameren Competitors	1429	6534	5509	145	2.32

Ameren presently has a consensus price target of $116.74, indicating a potential upside of 5.69%. As a group, “Electric Utilities” companies have a potential upside of 5.12%. Given Ameren’s stronger consensus rating and higher possible upside, research analysts plainly believe Ameren is more favorable than its rivals.

Insider & Institutional Ownership

79.1% of Ameren shares are held by institutional investors. Comparatively, 60.0% of shares of all “Electric Utilities” companies are held by institutional investors. 0.3% of Ameren shares are held by company insiders. Comparatively, 6.2% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Ameren has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Ameren’s rivals have a beta of -2.25, suggesting that their average stock price is 325% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ameren and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ameren	$8.80 billion	$1.46 billion	19.45
Ameren Competitors	$14.11 billion	$1.54 billion	19.93

Ameren’s rivals have higher revenue and earnings than Ameren. Ameren is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Ameren beats its rivals on 8 of the 15 factors compared.

Ameren Company Profile

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.