DRX vs. PNN, TEP, UU, CNA, SVT, IES, GOOD, ATOM, SAE, and KIBO
Should you be buying Drax Group stock or one of its competitors? The main competitors of Drax Group include Pennon Group (PNN), Telecom Plus (TEP), United Utilities Group (UU), Centrica (CNA), Severn Trent (SVT), Invinity Energy Systems (IES), Good Energy Group (GOOD), Atome (ATOM), SIMEC Atlantis Energy (SAE), and Kibo Energy (KIBO). These companies are all part of the "utilities" sector.
Drax Group (LON:DRX) and Pennon Group (LON:PNN) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, institutional ownership, profitability, analyst recommendations, dividends, community ranking, valuation, earnings and risk.
Drax Group pays an annual dividend of GBX 23 per share and has a dividend yield of 4.4%. Pennon Group pays an annual dividend of GBX 44 per share and has a dividend yield of 6.6%. Drax Group pays out 1,654.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pennon Group pays out -73,333.3% of its earnings in the form of a dividend. Pennon Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Drax Group has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Pennon Group has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Drax Group has higher revenue and earnings than Pennon Group. Pennon Group is trading at a lower price-to-earnings ratio than Drax Group, indicating that it is currently the more affordable of the two stocks.
79.1% of Drax Group shares are held by institutional investors. Comparatively, 56.8% of Pennon Group shares are held by institutional investors. 0.6% of Drax Group shares are held by company insiders. Comparatively, 0.5% of Pennon Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Drax Group has a net margin of 6.92% compared to Pennon Group's net margin of -2.05%. Drax Group's return on equity of 33.92% beat Pennon Group's return on equity.
In the previous week, Drax Group and Drax Group both had 3 articles in the media. Pennon Group's average media sentiment score of 1.44 beat Drax Group's score of 0.45 indicating that Pennon Group is being referred to more favorably in the news media.
Drax Group presently has a consensus price target of GBX 873.50, indicating a potential upside of 68.63%. Pennon Group has a consensus price target of GBX 950, indicating a potential upside of 42.75%. Given Drax Group's higher probable upside, research analysts plainly believe Drax Group is more favorable than Pennon Group.
Drax Group received 106 more outperform votes than Pennon Group when rated by MarketBeat users. Likewise, 65.05% of users gave Drax Group an outperform vote while only 62.04% of users gave Pennon Group an outperform vote.
Summary
Drax Group beats Pennon Group on 13 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DRX 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 LON 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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