CENTRICA PLC/S (OTCMKTS:CPYYY) and Pinnacle West Capital (NYSE:PNW) are both mid-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares CENTRICA PLC/S and Pinnacle West Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pinnacle West Capital||14.07%||9.19%||2.78%|
Valuation & Earnings
This table compares CENTRICA PLC/S and Pinnacle West Capital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CENTRICA PLC/S||$39.62 billion||0.17||$244.27 million||$0.59||8.15|
|Pinnacle West Capital||$3.69 billion||2.71||$511.05 million||$4.54||19.60|
Pinnacle West Capital has lower revenue, but higher earnings than CENTRICA PLC/S. CENTRICA PLC/S is trading at a lower price-to-earnings ratio than Pinnacle West Capital, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CENTRICA PLC/S has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.
This is a summary of current ratings and target prices for CENTRICA PLC/S and Pinnacle West Capital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pinnacle West Capital||3||7||3||0||2.00|
Pinnacle West Capital has a consensus price target of $95.45, indicating a potential upside of 7.26%. Given Pinnacle West Capital’s higher probable upside, analysts plainly believe Pinnacle West Capital is more favorable than CENTRICA PLC/S.
Insider and Institutional Ownership
0.2% of CENTRICA PLC/S shares are held by institutional investors. Comparatively, 85.7% of Pinnacle West Capital shares are held by institutional investors. 0.4% of Pinnacle West Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
CENTRICA PLC/S pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Pinnacle West Capital pays an annual dividend of $3.13 per share and has a dividend yield of 3.5%. CENTRICA PLC/S pays out 23.7% of its earnings in the form of a dividend. Pinnacle West Capital pays out 68.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Pinnacle West Capital has increased its dividend for 7 consecutive years. Pinnacle West Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Pinnacle West Capital beats CENTRICA PLC/S on 12 of the 16 factors compared between the two stocks.
CENTRICA PLC/S Company Profile
Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Germany, Norway, rest of Europe, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Exploration & Production segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, and gas and kitchen appliances; heating, ventilation, and air conditioning equipment; and water heaters, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides sea freight water transport services. It primarily supplies energy and services to approximately 25 million customers under the British Gas, Direct Energy, and Bord Gáis Energy brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.
Pinnacle West Capital Company Profile
Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. It generates, transmits, and distributes electricity using coal, nuclear, gas, oil, and solar generating facilities. The company serves approximately 1.2 million customers. It owns or leases approximately 6,015 megawatts of regulated generation capacity. The company was incorporated in 1985 and is headquartered in Phoenix, Arizona.
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