Financial Comparison: Atlantica Yield (AY) versus The Competition

Atlantica Yield (NASDAQ: AY) is one of 83 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare Atlantica Yield to related companies based on the strength of its risk, profitability, analyst recommendations, dividends, valuation, earnings and institutional ownership.

Volatility & Risk

Atlantica Yield has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Atlantica Yield’s peers have a beta of 0.62, suggesting that their average share price is 38% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Atlantica Yield $971.80 million -$4.85 million 77.26
Atlantica Yield Competitors $7.64 billion $831.80 million 49.86

Atlantica Yield’s peers have higher revenue and earnings than Atlantica Yield. Atlantica Yield 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.

Insider and Institutional Ownership

50.9% of Atlantica Yield shares are owned by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are owned by institutional investors. 2.7% of shares of all “Electric Utilities” companies are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlantica Yield 2.85% 1.41% 0.27%
Atlantica Yield Competitors -13.70% 9.27% 2.68%

Dividends

Atlantica Yield pays an annual dividend of $1.16 per share and has a dividend yield of 5.6%. Atlantica Yield pays out 429.6% 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 97.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Atlantica Yield and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantica Yield 0 1 3 0 2.75
Atlantica Yield Competitors 593 3085 2467 43 2.32

Atlantica Yield currently has a consensus price target of $24.75, suggesting a potential upside of 18.65%. As a group, “Electric Utilities” companies have a potential upside of 13.36%. Given Atlantica Yield’s stronger consensus rating and higher possible upside, analysts plainly believe Atlantica Yield is more favorable than its peers.

Summary

Atlantica Yield peers beat Atlantica Yield on 8 of the 15 factors compared.

Atlantica Yield Company Profile

Atlantica Yield plc, formerly Abengoa Yield plc, is a total return company. The Company owns, manages, and acquires renewable energy, conventional power, electric transmission lines and water assets, focused on North America (the United States and Mexico), South America (Peru, Chile, Brazil and Uruguay) and Europe, Middle East and Africa (Spain, Algeria and South Africa). Its segments include North America, South America and EMEA. It operates in business sectors, including renewable energy, conventional power, electric transmission lines and water. As of December 31, 2016, it owned or had interests in 21 assets, comprising 1,442 megawatt (MW) of renewable energy generation, 300 MW of conventional power generation, 1,099 miles of electric transmission lines, as well as an exchangeable preferred equity investment in Abengoa Concessoes Brasil Holding S.A., (ACBH). The renewable energy sector includes its activities related to the production electricity from solar power and wind plants.

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