DRX vs. PNN, TEP, CNA, UU, SVT, GOOD, IES, 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), Centrica (CNA), United Utilities Group (UU), Severn Trent (SVT), Good Energy Group (GOOD), Invinity Energy Systems (IES), 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 mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations, community ranking, media sentiment and institutional ownership.
Drax Group has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Pennon Group has a beta of 0.28, indicating that its share price is 72% 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.
Drax Group pays an annual dividend of GBX 23 per share and has a dividend yield of 4.1%. Pennon Group pays an annual dividend of GBX 44 per share and has a dividend yield of 6.1%. Drax Group pays out 1,642.9% 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.
In the previous week, Drax Group had 1 more articles in the media than Pennon Group. MarketBeat recorded 3 mentions for Drax Group and 2 mentions for Pennon Group. Pennon Group's average media sentiment score of 0.30 beat Drax Group's score of -0.19 indicating that Pennon Group is being referred to more favorably in the news media.
Drax Group presently has a consensus target price of GBX 873.50, suggesting a potential upside of 55.70%. Pennon Group has a consensus target price of GBX 840, suggesting a potential upside of 16.67%. Given Drax Group's stronger consensus rating and higher possible upside, equities research analysts plainly believe Drax Group is more favorable than Pennon Group.
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.
Drax Group received 105 more outperform votes than Pennon Group when rated by MarketBeat users. Likewise, 65.05% of users gave Drax Group an outperform vote while only 61.92% of users gave Pennon Group an outperform vote.
80.6% of Drax Group shares are held by institutional investors. Comparatively, 61.9% of Pennon Group shares are held by institutional investors. 0.7% 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Drax Group beats Pennon Group on 16 of the 20 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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