Fortis (NYSE: FTS) is one of 69 public companies in the “Electric services” industry, but how does it contrast to its competitors? We will compare Fortis to related businesses based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, dividends and risk.
This is a summary of recent recommendations for Fortis and its competitors, as provided by MarketBeat.
||Strong Buy Ratings
Fortis presently has a consensus target price of $51.00, suggesting a potential upside of 53.06%. As a group, “Electric services” companies have a potential upside of 10.43%. Given Fortis’ stronger consensus rating and higher probable upside, equities analysts clearly believe Fortis is more favorable than its competitors.
This table compares Fortis and its competitors’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional and Insider Ownership
51.3% of Fortis shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 3.5% of shares of all “Electric services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Fortis and its competitors revenue, earnings per share and valuation.
Fortis’ competitors have higher revenue, but lower earnings than Fortis. Fortis 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
Fortis has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500. Comparatively, Fortis’ competitors have a beta of 0.03, suggesting that their average stock price is 97% less volatile than the S&P 500.
Fortis pays an annual dividend of $1.36 per share and has a dividend yield of 4.1%. Fortis pays out 69.7% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.9% and pay out 70.7% of their earnings in the form of a dividend. Fortis is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Fortis beats its competitors on 10 of the 15 factors compared.
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 422,000 retail customers in southeastern Arizona; and 96,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 2,834 megawatts (MW), including 64 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 1,008,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 556,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 266,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 80,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 66,000 customers in Ontario; approximately 44,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and the Aitken Creek natural gas storage facility. It also owns and operates transmission and distribution lines; and natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
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