Reviewing Korea Electric Power (KEP) & Otter Tail (OTTR)

Korea Electric Power (NYSE: KEP) and Otter Tail (NASDAQ:OTTR) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Dividends

Korea Electric Power pays an annual dividend of $0.29 per share and has a dividend yield of 1.7%. Otter Tail pays an annual dividend of $1.34 per share and has a dividend yield of 3.1%. Otter Tail pays out 72.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Korea Electric Power and Otter Tail’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Korea Electric Power $53.40 billion 0.40 $1.17 billion N/A N/A
Otter Tail $849.35 million 2.04 $72.43 million $1.86 23.44

Korea Electric Power has higher revenue and earnings than Otter Tail.

Analyst Ratings

This is a summary of current recommendations and price targets for Korea Electric Power and Otter Tail, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korea Electric Power 0 7 1 0 2.13
Otter Tail 0 3 0 0 2.00

Otter Tail has a consensus target price of $44.00, suggesting a potential upside of 0.92%. Given Otter Tail’s higher probable upside, analysts clearly believe Otter Tail is more favorable than Korea Electric Power.

Institutional & Insider Ownership

4.6% of Korea Electric Power shares are held by institutional investors. Comparatively, 42.4% of Otter Tail shares are held by institutional investors. 1.0% of Korea Electric Power shares are held by insiders. Comparatively, 1.7% of Otter Tail shares 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.

Profitability

This table compares Korea Electric Power and Otter Tail’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korea Electric Power 6.21% 3.82% 1.56%
Otter Tail 9.02% 11.57% 4.07%

Volatility & Risk

Korea Electric Power has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Otter Tail has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Summary

Otter Tail beats Korea Electric Power on 10 of the 15 factors compared between the two stocks.

Korea Electric Power Company Profile

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, hydro, wind, solar, and biomass sources. As of December 31, 2016, the company had a total of 655 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 79,217 megawatts. Its transmission system consisted of 33,630 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 830 substations with an installed transformer capacity of 305,418 megavolt-amperes; and distribution system consisted of 112,751 megavolt-amperes of transformer capacity and 9,122,344 units of support with a total line length of 474,099 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It is also involved in providing plant maintenance and engineering services, and information services; selling nuclear fuel; communication line leasing; nuclear export technology and overseas resource development; and developing uranium mine. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju, South Korea.

Otter Tail Company Profile

Otter Tail Corporation, together with its subsidiaries, engages in electric, manufacturing, and plastics businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas and oil sources. It serves approximately 130,000 residential, commercial, industrial, and other customers. Otter Tail Corporation's Manufacturing segment stamps, fabricates, welds, paints, and laser cuts metal components for use in the recreational vehicle, agricultural, oil and gas, lawn and garden, industrial equipment, health and fitness, and enclosure industries; manufactures and fabricates parts for off-road equipment, mining machinery, oil fields and offshore oil rigs, wind industry components, broadcast antennae, and farm equipment; and provides laser cutting services and stamping to weldments and assemblies for metal fabrication buyers and original equipment manufacturers. It also manufactures and sells thermoformed products for the horticulture industry; and clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the medical and life sciences, industrial, recreation, and electronics industries. The company's Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage system, and other uses. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

Receive News & Ratings for Korea Electric Power Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Korea Electric Power and related companies with MarketBeat.com's FREE daily email newsletter.




Leave a Reply