Head to Head Analysis: Middlesex Water (MSEX) and Its Rivals

Middlesex Water (NASDAQ:MSEX) is one of 38 public companies in the “Water Utilities” industry, but how does it compare to its competitors? We will compare Middlesex Water to related businesses based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Middlesex Water and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlesex Water	24.50%	10.08%	3.69%
Middlesex Water Competitors	0.18%	-0.92%	1.77%

Dividends

Middlesex Water pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Middlesex Water pays out 52.0% of its earnings in the form of a dividend. As a group, “Water Utilities” companies pay a dividend yield of 3.9% and pay out 83.6% of their earnings in the form of a dividend. Middlesex Water has increased its dividend for 52 consecutive years.

Valuation and Earnings

This table compares Middlesex Water and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Middlesex Water	$194.69 million	$42.82 million	21.61
Middlesex Water Competitors	$5.90 billion	$270.20 million	14.60

Middlesex Water’s competitors have higher revenue and earnings than Middlesex Water. Middlesex Water 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.

Volatility & Risk

Middlesex Water has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Middlesex Water’s competitors have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

79.5% of Middlesex Water shares are held by institutional investors. Comparatively, 57.7% of shares of all “Water Utilities” companies are held by institutional investors. 1.9% of Middlesex Water shares are held by insiders. Comparatively, 7.7% of shares of all “Water Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Middlesex Water and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlesex Water	0	3	0	1	2.50
Middlesex Water Competitors	408	1236	1028	32	2.25

Middlesex Water currently has a consensus target price of $60.75, suggesting a potential upside of 1.47%. As a group, “Water Utilities” companies have a potential upside of 92.60%. Given Middlesex Water’s competitors higher probable upside, analysts clearly believe Middlesex Water has less favorable growth aspects than its competitors.

Summary

Middlesex Water beats its competitors on 8 of the 15 factors compared.

About Middlesex Water

Middlesex Water Company owns and operates regulated water utility and wastewater systems. It operates in Regulated and Non-Regulated segments. The Regulated segment collects, treats, and distributes water on a retail and wholesale basis to residential, commercial, industrial, and fire protection customers, as well as provides regulated wastewater systems in New Jersey and Delaware. The Non-Regulated segment provides non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Middlesex Water Company was incorporated in 1896 and is headquartered in Iselin, New Jersey.