Reviewing Pattern Energy Group (PEGI) and Its Rivals

Pattern Energy Group (NASDAQ: PEGI) is one of 69 publicly-traded companies in the “Electric services” industry, but how does it compare to its rivals? We will compare Pattern Energy Group to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Ratings

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This is a summary of current recommendations and price targets for Pattern Energy Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pattern Energy Group 0 6 7 0 2.54
Pattern Energy Group Competitors 431 2354 2032 57 2.35

Pattern Energy Group presently has a consensus price target of $22.96, suggesting a potential upside of 30.52%. As a group, “Electric services” companies have a potential upside of 9.16%. Given Pattern Energy Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pattern Energy Group is more favorable than its rivals.

Earnings & Valuation

This table compares Pattern Energy Group and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pattern Energy Group $411.34 million -$17.90 million 92.58
Pattern Energy Group Competitors $8.49 billion $471.49 million 10.14

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

Insider & Institutional Ownership

96.8% of Pattern Energy Group shares are held by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are held by institutional investors. 1.6% of Pattern Energy Group shares are held by insiders. Comparatively, 3.5% of shares of all “Electric services” 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.

Dividends

Pattern Energy Group pays an annual dividend of $1.69 per share and has a dividend yield of 9.6%. Pattern Energy Group pays out 889.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 70.7% of their earnings in the form of a dividend.

Profitability

This table compares Pattern Energy Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pattern Energy Group -4.35% 0.34% 0.16%
Pattern Energy Group Competitors -22.94% 4.45% -0.40%

Volatility and Risk

Pattern Energy Group has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Pattern Energy Group’s rivals have a beta of 0.03, indicating that their average share price is 97% less volatile than the S&P 500.

Summary

Pattern Energy Group beats its rivals on 9 of the 15 factors compared.

Pattern Energy Group Company Profile

Pattern Energy Group Inc. is an independent power company focused on owning and operating power projects. The Company holds interests in over 18 wind power projects located in the United States, Canada and Chile with total capacity of over 2,644 megawatts (MW). Each of its projects has contracted to sell its output pursuant to a power sale agreement. The Company sells its electricity and environmental attributes, including renewable energy credits (RECs), to local utilities under long-term and fixed-price power purchase agreements (PPAs). The Company’s operating projects are Gulf Wind, Texas; Hatchet Ridge, California; St. Joseph, Manitoba; Spring Valley, Nevada; Santa Isabel, Puerto Rico; Ocotillo, California; South Kent, Ontario; El Arrayan, Chile; Panhandle 1, Texas; Panhandle 2, Texas; Grand, Ontario; Post Rock, Kansas; Lost Creek, Missouri; K2, Ontario; Logan’s Gap, Texas, Amazon Wind Farm Fowler Ridge, Indiana, and Armow Wind power facility in Ontario, Canada.

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