Pepco (POM) & Its Competitors Financial Survey

Pepco (NYSE: POM) is one of 79 publicly-traded companies in the “Electric Utilities” industry, but how does it weigh in compared to its rivals? We will compare Pepco to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Pepco and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pepco 10.52% 11.08% 2.95%
Pepco Competitors -15.34% 8.88% 2.47%

Dividends

Pepco pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. Pepco pays out 86.4% 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 3.5% and pay out 98.4% of their earnings in the form of a dividend. Pepco is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pepco and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pepco 0 0 0 0 N/A
Pepco Competitors 578 3006 2393 43 2.32

As a group, “Electric Utilities” companies have a potential upside of 13.72%. Given Pepco’s rivals higher possible upside, analysts plainly believe Pepco has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

66.4% of shares of all “Electric Utilities” companies are held by institutional investors. 1.1% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Pepco and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Pepco N/A N/A 21.56
Pepco Competitors $8.06 billion $880.90 million 60.92

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

About Pepco

Pepco Holdings LLC, formerly Pepco Holdings, Inc., is a holding company. The Company, through its utility subsidiaries, is engaged in the transmission, distribution and default supply of electricity, and the distribution and supply of natural gas. The Company’s segments include Power Delivery, Pepco Energy Services, and Corporate and Other. The Company’s subsidiaries include Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Pepco is engaged in the transmission, distribution and default supply of electricity. DPL is involved in the transmission, distribution and default supply of electricity, and distribution and supply of natural gas. ACE is engaged in the transmission, distribution and default supply of electricity. The Company’s subsidiaries own and operate a network of wires, substations and other equipment that are classified as transmission facilities, distribution facilities or common facilities.

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