Analyzing Artesian Resources (ARTNA) & Its Rivals

Artesian Resources (NASDAQ: ARTNA) is one of 15 public companies in the “Water supply” industry, but how does it compare to its competitors? We will compare Artesian Resources to similar companies based on the strength of its valuation, institutional ownership, earnings, dividends, profitability, analyst recommendations and risk.

Dividends

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Artesian Resources pays an annual dividend of $0.94 per share and has a dividend yield of 2.5%. Artesian Resources pays out 40.9% of its earnings in the form of a dividend. As a group, “Water supply” companies pay a dividend yield of 2.0% and pay out 55.9% of their earnings in the form of a dividend. Artesian Resources is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Artesian Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Artesian Resources 17.00% 10.36% 3.13%
Artesian Resources Competitors 10.39% 8.89% 2.64%

Institutional & Insider Ownership

38.7% of Artesian Resources shares are owned by institutional investors. Comparatively, 49.1% of shares of all “Water supply” companies are owned by institutional investors. 20.6% of Artesian Resources shares are owned by company insiders. Comparatively, 11.1% of shares of all “Water supply” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Artesian Resources has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Artesian Resources’ competitors have a beta of 0.51, meaning that their average share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Artesian Resources and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Artesian Resources 0 1 0 0 2.00
Artesian Resources Competitors 88 225 256 13 2.33

Artesian Resources presently has a consensus target price of $41.00, indicating a potential upside of 10.22%. As a group, “Water supply” companies have a potential downside of 2.03%. Given Artesian Resources’ higher probable upside, equities research analysts clearly believe Artesian Resources is more favorable than its competitors.

Valuation and Earnings

This table compares Artesian Resources and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Artesian Resources $82.24 million $13.98 million 16.17
Artesian Resources Competitors $722.21 million $111.64 million 24.13

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

Summary

Artesian Resources competitors beat Artesian Resources on 8 of the 15 factors compared.

About Artesian Resources

Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services on the Delmarva Peninsula. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater services to customers in Delaware. It also provides contract water and wastewater services; water, sewer, and internal service line protection plans; and wastewater management services, as well as design, construction, and engineering services. In addition, the company offers services to other water utilities, including operations and billing functions; and owns real estate properties, including land for office buildings, a water treatment plant, and wastewater facility. As of December 31, 2017, it served approximately 84,200 metered water customers in Delaware, 2,300 metered water customers in Maryland, and 40 customers in Pennsylvania through 1,293 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.

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