Evergy (NASDAQ:EVRG – Get Free Report) and PPL (NYSE:PPL – Get Free Report) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Earnings & Valuation
This table compares Evergy and PPL”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evergy | $5.96 billion | 3.31 | $855.60 million | $3.77 | 22.73 |
| PPL | $9.04 billion | 2.97 | $1.18 billion | $1.64 | 21.80 |
Dividends
Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.2%. PPL pays an annual dividend of $1.14 per share and has a dividend yield of 3.2%. Evergy pays out 73.7% of its earnings in the form of a dividend. PPL pays out 69.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Evergy has increased its dividend for 20 consecutive years and PPL has increased its dividend for 3 consecutive years. Evergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Evergy and PPL, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evergy | 0 | 3 | 8 | 0 | 2.73 |
| PPL | 0 | 3 | 10 | 0 | 2.77 |
Evergy currently has a consensus target price of $90.10, indicating a potential upside of 5.12%. PPL has a consensus target price of $41.50, indicating a potential upside of 16.08%. Given PPL’s stronger consensus rating and higher probable upside, analysts clearly believe PPL is more favorable than Evergy.
Profitability
This table compares Evergy and PPL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evergy | 14.63% | 9.09% | 2.75% |
| PPL | 13.09% | 9.41% | 3.10% |
Institutional & Insider Ownership
87.2% of Evergy shares are owned by institutional investors. Comparatively, 77.0% of PPL shares are owned by institutional investors. 1.5% of Evergy shares are owned by insiders. Comparatively, 0.3% of PPL shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Evergy has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, PPL has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
Summary
PPL beats Evergy on 9 of the 17 factors compared between the two stocks.
About Evergy
Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.
About PPL
PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.
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