Black Hills Corporation (NYSE: BKH) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it compare to its peers? We will compare Black Hills Corporation to similar businesses based on the strength of its analyst recommendations, valuation, risk, institutional ownership, dividends, earnings and profitability.

Dividends

Black Hills Corporation pays an annual dividend of $1.78 per share and has a dividend yield of 2.6%. Black Hills Corporation pays out 74.8% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend. Black Hills Corporation has raised its dividend for 47 consecutive years. Black Hills Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Black Hills Corporation has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Black Hills Corporation’s peers have a beta of 0.60, suggesting that their average share price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Black Hills Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Black Hills Corporation $1.70 billion $588.78 million 29.30
Black Hills Corporation Competitors $7.70 billion $2.04 billion 20.64

Black Hills Corporation’s peers have higher revenue and earnings than Black Hills Corporation. Black Hills Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

93.8% of Black Hills Corporation shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 1.1% of Black Hills Corporation shares are held by insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Black Hills Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Hills Corporation 7.71% 10.48% 2.84%
Black Hills Corporation Competitors 8.39% 8.87% 2.32%

Analyst Ratings

This is a summary of recent recommendations for Black Hills Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Hills Corporation 0 0 5 0 3.00
Black Hills Corporation Competitors 315 955 818 6 2.25

Black Hills Corporation currently has a consensus target price of $75.00, indicating a potential upside of 7.56%. As a group, “Multiline Utilities” companies have a potential upside of 11.55%. Given Black Hills Corporation’s peers higher probable upside, analysts clearly believe Black Hills Corporation has less favorable growth aspects than its peers.

Summary

Black Hills Corporation peers beat Black Hills Corporation on 8 of the 15 factors compared.

About Black Hills Corporation

Black Hills Corporation is a holding company. The Company is an integrated energy company, which is focused primarily on regulated utilities. The Company operates through segments, including Electric Utilities, Gas Utilities, Power Generation, Mining, Oil and Gas, and Corporate. As of December 31, 2016, the Electric Utilities segment generated, transmitted and distributed electricity to approximately 208,500 customers in South Dakota, Wyoming, Colorado and Montana. The Gas Utilities Segment includes the natural gas operations of Cheyenne Light. The Power Generation segment produces electric power from its generating plants and sells the electric capacity and energy principally to its utilities under long-term contracts. The Mining segment operates through its Wyodak Resources Development Corp. (WRDC) subsidiary. The Company’s Oil and Gas segment acquires, explores for, develops and produces natural gas and crude oil in the United States primarily in the Rocky Mountain region.

Receive News & Ratings for Black Hills Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Black Hills Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.