SSE vs. SVT, CNA, UU, NG, TEP, YU, DRX, PNN, HGEN, and JEL
Should you be buying SSE stock or one of its competitors? The main competitors of SSE include Severn Trent (SVT), Centrica (CNA), United Utilities Group (UU), National Grid (NG), Telecom Plus (TEP), Yü Group (YU), Drax Group (DRX), Pennon Group (PNN), HydrogenOne Capital Growth (HGEN), and Jersey Electricity (JEL). These companies are all part of the "utilities" sector.
SSE (LON:SSE) and Severn Trent (LON:SVT) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, community ranking, dividends, valuation, earnings, analyst recommendations, media sentiment, risk and institutional ownership.
SSE received 171 more outperform votes than Severn Trent when rated by MarketBeat users. Likewise, 56.84% of users gave SSE an outperform vote while only 52.37% of users gave Severn Trent an outperform vote.
In the previous week, SSE had 14 more articles in the media than Severn Trent. MarketBeat recorded 14 mentions for SSE and 0 mentions for Severn Trent. SSE's average media sentiment score of 0.32 beat Severn Trent's score of 0.00 indicating that SSE is being referred to more favorably in the media.
70.2% of SSE shares are owned by institutional investors. Comparatively, 78.3% of Severn Trent shares are owned by institutional investors. 0.1% of SSE shares are owned by company insiders. Comparatively, 0.3% of Severn Trent shares are owned by company 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.
SSE has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Severn Trent has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.
SSE has a net margin of 4.96% compared to Severn Trent's net margin of 4.63%. Severn Trent's return on equity of 10.14% beat SSE's return on equity.
SSE has higher revenue and earnings than Severn Trent. SSE is trading at a lower price-to-earnings ratio than Severn Trent, indicating that it is currently the more affordable of the two stocks.
SSE pays an annual dividend of GBX 88 per share and has a dividend yield of 5.3%. Severn Trent pays an annual dividend of GBX 111 per share and has a dividend yield of 4.5%. SSE pays out 16,603.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Severn Trent pays out 26,428.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SSE is clearly the better dividend stock, given its higher yield and lower payout ratio.
SSE currently has a consensus price target of GBX 1,959, suggesting a potential upside of 17.55%. Severn Trent has a consensus price target of GBX 2,940, suggesting a potential upside of 19.17%. Given Severn Trent's higher probable upside, analysts plainly believe Severn Trent is more favorable than SSE.
Summary
SSE beats Severn Trent on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SSE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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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