Financial Contrast: FirstEnergy (FE) vs. Its Rivals

FirstEnergy (NYSE:FE – Get Free Report) is one of 105 public companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare FirstEnergy to related companies based on the strength of its valuation, profitability, analyst recommendations, dividends, risk, institutional ownership and earnings.

Institutional and Insider Ownership

89.4% of FirstEnergy shares are held by institutional investors. Comparatively, 60.0% of shares of all “Electric Utilities” companies are held by institutional investors. 0.1% of FirstEnergy 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

FirstEnergy pays an annual dividend of $1.86 per share and has a dividend yield of 4.0%. FirstEnergy pays out 89.4% 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 Utilities” companies pay a dividend yield of 3.2% and pay out 64.4% of their earnings in the form of a dividend. FirstEnergy has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for FirstEnergy and its peers, as reported by MarketBeat.com.

FirstEnergy currently has a consensus price target of $50.77, indicating a potential upside of 9.32%. As a group, “Electric Utilities” companies have a potential upside of 5.20%. Given FirstEnergy’s stronger consensus rating and higher possible upside, analysts clearly believe FirstEnergy is more favorable than its peers.

Earnings & Valuation

This table compares FirstEnergy and its peers top-line revenue, earnings per share (EPS) and valuation.

FirstEnergy has higher revenue, but lower earnings than its peers. FirstEnergy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

FirstEnergy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, FirstEnergy’s peers have a beta of -2.25, suggesting that their average share price is 325% less volatile than the S&P 500.

Profitability

This table compares FirstEnergy and its peers’ net margins, return on equity and return on assets.

Summary

FirstEnergy beats its peers on 8 of the 15 factors compared.

About FirstEnergy

(Get Free Report)

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

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