CIG vs. FE, PPL, ES, FTS, CNP, NRG, EBR, AGR, PNW, and BEP
Should you be buying CEMIG stock or one of its competitors? The main competitors of CEMIG include FirstEnergy (FE), PPL (PPL), Eversource Energy (ES), Fortis (FTS), CenterPoint Energy (CNP), NRG Energy (NRG), Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR), Avangrid (AGR), Pinnacle West Capital (PNW), and Brookfield Renewable Partners (BEP). These companies are all part of the "electric services" industry.
CEMIG (NYSE:CIG) and FirstEnergy (NYSE:FE) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their media sentiment, valuation, dividends, analyst recommendations, risk, profitability, community ranking, institutional ownership and earnings.
CEMIG has higher earnings, but lower revenue than FirstEnergy. CEMIG is trading at a lower price-to-earnings ratio than FirstEnergy, indicating that it is currently the more affordable of the two stocks.
CEMIG has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
In the previous week, FirstEnergy had 9 more articles in the media than CEMIG. MarketBeat recorded 10 mentions for FirstEnergy and 1 mentions for CEMIG. FirstEnergy's average media sentiment score of 0.59 beat CEMIG's score of 0.12 indicating that FirstEnergy is being referred to more favorably in the news media.
CEMIG presently has a consensus target price of $2.12, indicating a potential upside of 13.73%. FirstEnergy has a consensus target price of $40.20, indicating a potential downside of 0.15%. Given CEMIG's stronger consensus rating and higher possible upside, equities research analysts clearly believe CEMIG is more favorable than FirstEnergy.
CEMIG has a net margin of 14.81% compared to FirstEnergy's net margin of 8.22%. CEMIG's return on equity of 22.80% beat FirstEnergy's return on equity.
FirstEnergy received 347 more outperform votes than CEMIG when rated by MarketBeat users. However, 58.37% of users gave CEMIG an outperform vote while only 56.45% of users gave FirstEnergy an outperform vote.
89.4% of FirstEnergy shares are owned by institutional investors. 0.1% of FirstEnergy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
CEMIG pays an annual dividend of $0.18 per share and has a dividend yield of 9.7%. FirstEnergy pays an annual dividend of $1.70 per share and has a dividend yield of 4.2%. CEMIG pays out 45.0% 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. CEMIG is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
CEMIG and FirstEnergy tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CIG 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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