Otter Tail Corporation (NASDAQ:OTTR) versus Its Competitors Financial Survey

Otter Tail Corporation (NASDAQ: OTTR) is one of 86 public companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare Otter Tail Corporation to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

40.5% of Otter Tail Corporation shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 1.4% of Otter Tail Corporation shares are held by company insiders. Comparatively, 2.6% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Otter Tail Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Otter Tail Corporation pays out 71.1% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Otter Tail Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Otter Tail Corporation 0 2 1 0 2.33
Otter Tail Corporation Competitors 551 3092 2470 45 2.33

Otter Tail Corporation currently has a consensus price target of $41.00, suggesting a potential downside of 10.09%. As a group, “Electric Utilities” companies have a potential upside of 7.09%. Given Otter Tail Corporation’s peers higher probable upside, analysts plainly believe Otter Tail Corporation has less favorable growth aspects than its peers.

Volatility and Risk

Otter Tail Corporation has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Otter Tail Corporation’s peers have a beta of 0.65, meaning that their average stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Otter Tail Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Otter Tail Corporation 8.53% 10.47% 3.68%
Otter Tail Corporation Competitors -10.36% 3.63% 0.59%

Valuation and Earnings

This table compares Otter Tail Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Otter Tail Corporation $803.54 million $62.32 million 25.33
Otter Tail Corporation Competitors $7.63 billion $832.67 million 48.61

Otter Tail Corporation’s peers have higher revenue and earnings than Otter Tail Corporation. Otter Tail Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Otter Tail Corporation peers beat Otter Tail Corporation on 9 of the 15 factors compared.

About Otter Tail Corporation

Otter Tail Corporation is a holding company. The Company operates through three segments: Electric, Manufacturing and Plastics. The Electric segment includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by Otter Tail Power Company (OTP). The Manufacturing segment consists of businesses in manufacturing activities, such as contract machining, metal parts stamping, fabrication and painting, and production of material and handling trays and horticultural containers. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States. The Plastics segment consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States. The Company’s manufacturing and plastic pipe businesses are owned by its subsidiary, Varistar Corporation.

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