AEE vs. FE, AES, ETR, PCG, SRE, D, PEG, ED, WEC, and DTE
Should you be buying Ameren stock or one of its competitors? The main competitors of Ameren include FirstEnergy (FE), AES (AES), Entergy (ETR), PG&E (PCG), Sempra (SRE), Dominion Energy (D), Public Service Enterprise Group (PEG), Consolidated Edison (ED), WEC Energy Group (WEC), and DTE Energy (DTE). These companies are all part of the "utilities" sector.
Ameren (NYSE:AEE) and FirstEnergy (NYSE:FE) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, community ranking, media sentiment, analyst recommendations, dividends, earnings and institutional ownership.
Ameren currently has a consensus price target of $79.70, indicating a potential upside of 8.63%. FirstEnergy has a consensus price target of $40.20, indicating a potential downside of 0.15%. Given Ameren's higher possible upside, equities research analysts clearly believe Ameren is more favorable than FirstEnergy.
In the previous week, Ameren had 10 more articles in the media than FirstEnergy. MarketBeat recorded 21 mentions for Ameren and 11 mentions for FirstEnergy. Ameren's average media sentiment score of 0.72 beat FirstEnergy's score of 0.59 indicating that Ameren is being referred to more favorably in the media.
79.1% of Ameren shares are owned by institutional investors. Comparatively, 89.4% of FirstEnergy shares are owned by institutional investors. 0.4% of Ameren shares are owned by insiders. Comparatively, 0.1% of FirstEnergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
FirstEnergy received 243 more outperform votes than Ameren when rated by MarketBeat users. Likewise, 56.45% of users gave FirstEnergy an outperform vote while only 51.25% of users gave Ameren an outperform vote.
Ameren has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Ameren has higher earnings, but lower revenue than FirstEnergy. Ameren is trading at a lower price-to-earnings ratio than FirstEnergy, indicating that it is currently the more affordable of the two stocks.
Ameren has a net margin of 15.84% compared to FirstEnergy's net margin of 8.22%. FirstEnergy's return on equity of 12.45% beat Ameren's return on equity.
Ameren pays an annual dividend of $2.68 per share and has a dividend yield of 3.7%. FirstEnergy pays an annual dividend of $1.70 per share and has a dividend yield of 4.2%. Ameren pays out 61.6% of its earnings in the form of a dividend. FirstEnergy pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
FirstEnergy beats Ameren on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AEE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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