NiSource (NYSE:NI – Get Free Report) is one of 52 public companies in the “Multi – Utilities” industry, but how does it contrast to its competitors? We will compare NiSource to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
Institutional & Insider Ownership
91.6% of NiSource shares are held by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are held by institutional investors. 0.4% of NiSource shares are held by insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
NiSource pays an annual dividend of $1.20 per share and has a dividend yield of 2.6%. NiSource pays out 61.5% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.3% and pay out 33.6% of their earnings in the form of a dividend. NiSource has increased its dividend for 14 consecutive years. NiSource lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Profitability
This table compares NiSource and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NiSource | 13.56% | 8.16% | 2.60% |
| NiSource Competitors | 8.85% | 14.88% | 4.08% |
Valuation and Earnings
This table compares NiSource and its competitors top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| NiSource | $6.96 billion | $929.50 million | 23.24 |
| NiSource Competitors | $16.49 billion | $269.64 million | 28.43 |
NiSource’s competitors have higher revenue, but lower earnings than NiSource. NiSource is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
NiSource has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, NiSource’s competitors have a beta of 0.69, suggesting that their average stock price is 31% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for NiSource and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NiSource | 0 | 1 | 12 | 0 | 2.92 |
| NiSource Competitors | 1051 | 4113 | 4430 | 87 | 2.37 |
NiSource currently has a consensus price target of $48.58, indicating a potential upside of 7.21%. As a group, “Multi – Utilities” companies have a potential upside of 26.26%. Given NiSource’s competitors higher probable upside, analysts clearly believe NiSource has less favorable growth aspects than its competitors.
Summary
NiSource competitors beat NiSource on 10 of the 15 factors compared.
About NiSource
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
Receive News & Ratings for NiSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NiSource and related companies with MarketBeat.com's FREE daily email newsletter.
