UIL (UIL) vs. Its Peers Critical Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
UIL 4.73% 4.50% 1.21%
UIL Competitors -15.34% 8.88% 2.47%

Insider & Institutional 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 insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for UIL and its peers, as reported by MarketBeat.com.

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

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

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
UIL N/A N/A 23.63
UIL Competitors $8.06 billion $880.90 million 60.91

UIL’s peers have higher revenue and earnings than UIL. UIL 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

UIL peers beat UIL on 7 of the 8 factors compared.

UIL Company Profile

UIL Holdings Corporation (UIL Holdings) is engaged in the ownership of its operating regulated utility businesses. The utility businesses consist of the electric distribution and transmission operations of The United Illuminating Company (UI) and the natural gas transportation, distribution and sales operations of The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG) and The Berkshire Gas Company. The Company operates in two segments: Electric Distribution and Transmission, which is engaged in purchase, transmission, distribution and sale of electricity for residential, commercial and industrial purposes, and Gas Distribution, which is engaged in natural gas transportation, distribution and sales operations.

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