Comparing UIL (UIL) and Its Peers

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

Institutional and Insider Ownership

65.8% of shares of all “Electric Utilities” companies are held by institutional investors. 2.7% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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 -14.63% 8.09% 2.40%

Analyst Recommendations

This is a summary of current recommendations and price targets 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 602 3119 2483 43 2.31

As a group, “Electric Utilities” companies have a potential upside of 16.23%. Given UIL’s peers higher probable upside, analysts plainly believe UIL has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares UIL and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
UIL N/A N/A 23.63
UIL Competitors $7.66 billion $856.37 million 55.05

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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