Head-To-Head Analysis: Avangrid (NYSE:AGR) vs. Korea Electric Power (NYSE:KEP)

Avangrid (NYSE:AGR) and Korea Electric Power (NYSE:KEP) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avangrid $6.48 billion 2.35 $595.00 million $2.21 22.29
Korea Electric Power $55.17 billion 0.24 -$1.20 billion ($0.93) -11.12

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

Volatility & Risk

Avangrid has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Korea Electric Power has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Dividends

Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.6%. Korea Electric Power does not pay a dividend. Avangrid pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

14.8% of Avangrid shares are owned by institutional investors. Comparatively, 3.9% of Korea Electric Power shares are owned by institutional investors. 0.4% of Avangrid shares are owned by insiders. Comparatively, 1.0% of Korea Electric Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Avangrid and Korea Electric Power, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avangrid 2 5 0 0 1.71
Korea Electric Power 0 4 0 0 2.00

Avangrid presently has a consensus price target of $50.83, indicating a potential upside of 3.17%. Given Avangrid’s higher probable upside, research analysts plainly believe Avangrid is more favorable than Korea Electric Power.

Profitability

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

Net Margins Return on Equity Return on Assets
Avangrid 8.85% 4.09% 1.95%
Korea Electric Power -2.90% -2.45% -0.93%

Summary

Avangrid beats Korea Electric Power on 11 of the 16 factors compared between the two stocks.

Avangrid Company Profile

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Korea Electric Power Company Profile

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in Korea and internationally. The company operates through Transmission and Distribution, Electric Power Generation (Nuclear), Electric Power Generation (Non-nuclear), Plant Maintenance & Engineering Service, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2017, the company had a total of 679 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,132 megawatts. Its transmission system consisted of 33,955 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 839 substations with an installed transformer capacity of 311,869 megavolt-amperes; and distribution system included 115,945 megavolt-amperes of transformer capacity and 9,287,199 units of support with a total line length of 483,467 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also offers utility plant maintenance and architectural engineering, information, communication line leasing, resources development, and fly ashes recycling services, as well as sells nuclear fuel. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju, South Korea.

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