Head-To-Head Survey: Consolidated Edison (ED) and Korea Electric Power Corporation (KEP)

Consolidated Edison (NYSE: ED) and Korea Electric Power Corporation (NYSE:KEP) are both large-cap electric utilities – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Dividends

Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.2%. Korea Electric Power Corporation does not pay a dividend. Consolidated Edison pays out 69.2% of its earnings in the form of a dividend. Korea Electric Power Corporation has raised its dividend for 42 consecutive years.

Volatility & Risk

Consolidated Edison has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Korea Electric Power Corporation has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares Consolidated Edison and Korea Electric Power Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Edison 10.42% 8.42% 2.52%
Korea Electric Power Corporation 7.44% 6.06% 2.47%

Valuation & Earnings

This table compares Consolidated Edison and Korea Electric Power Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Consolidated Edison $12.08 billion 2.24 $1.25 billion $3.99 21.85
Korea Electric Power Corporation $51.76 billion 0.43 $6.34 billion $3.91 4.43

Korea Electric Power Corporation has higher revenue and earnings than Consolidated Edison. Korea Electric Power Corporation is trading at a lower price-to-earnings ratio than Consolidated Edison, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

55.3% of Consolidated Edison shares are held by institutional investors. Comparatively, 4.6% of Korea Electric Power Corporation shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by company insiders. Comparatively, 1.0% of Korea Electric Power Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Consolidated Edison and Korea Electric Power Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Edison 4 5 1 0 1.70
Korea Electric Power Corporation 1 4 3 0 2.25

Consolidated Edison presently has a consensus price target of $78.94, indicating a potential downside of 9.46%. Given Consolidated Edison’s higher probable upside, research analysts clearly believe Consolidated Edison is more favorable than Korea Electric Power Corporation.

Summary

Consolidated Edison beats Korea Electric Power Corporation on 9 of the 17 factors compared between the two stocks.

Consolidated Edison Company Profile

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

Korea Electric Power Corporation Company Profile

Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity. The nuclear power generation segment, which is engaged in the nuclear, hydro, pumping-up power generation. The thermal power generation segment, which is engaged in bituminous coal, anthracite, liquefied natural gas (LNG) power generation. And the Other Segment comprises operations related to the plant design, power generation equipment assembly, nuclear raw materials supplement, electricity IT service, renewable source power generation and financial investment on overseas businesses.

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