Critical Survey: ITC Holdings Corp. (ITC) & Korea Electric Power Corporation (KEP)
ITC Holdings Corp. (NYSE: ITC) and Korea Electric Power Corporation (NYSE:KEP) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Valuation and Earnings
This table compares ITC Holdings Corp. and Korea Electric Power Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ITC Holdings Corp.||N/A||N/A||N/A||$1.54||29.55|
|Korea Electric Power Corporation||$52.54 billion||0.43||$15.77 billion||$3.91||4.48|
Korea Electric Power Corporation has higher revenue and earnings than ITC Holdings Corp.. Korea Electric Power Corporation is trading at a lower price-to-earnings ratio than ITC Holdings Corp., indicating that it is currently the more affordable of the two stocks.
ITC Holdings Corp. pays an annual dividend of $0.86 per share and has a dividend yield of 1.9%. Korea Electric Power Corporation does not pay a dividend. ITC Holdings Corp. pays out 55.8% of its earnings in the form of a dividend. Korea Electric Power Corporation has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
84.2% of ITC Holdings Corp. shares are owned by institutional investors. Comparatively, 4.5% of Korea Electric Power Corporation shares are owned by institutional investors. 3.2% of ITC Holdings Corp. shares are owned by insiders. Comparatively, 1.0% of Korea Electric Power Corporation shares are owned by 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.
This is a breakdown of current recommendations and price targets for ITC Holdings Corp. and Korea Electric Power Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ITC Holdings Corp.||0||1||0||0||2.00|
|Korea Electric Power Corporation||0||4||4||0||2.50|
This table compares ITC Holdings Corp. and Korea Electric Power Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ITC Holdings Corp.||26.73%||16.53%||3.82%|
|Korea Electric Power Corporation||7.44%||6.06%||2.47%|
ITC Holdings Corp. Company Profile
ITC Holdings Corp. (ITC Holdings) is a holding company. The Company is engaged in owning, operating, maintaining and investing in transmission infrastructure. The Company’s business consists primarily of the electric transmission operations of its Regulated Operating Subsidiaries. Its Regulated Operating Subsidiaries include International Transmission Company (ITCTransmission), Michigan Electric Transmission Company, LLC (METC), ITC Midwest LLC (ITC Midwest). The operations performed by its Regulated Operating Subsidiaries fall into the various categories, such as asset planning; engineering, design and construction; maintenance, and real time operations. Its customers include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. It owns and operates high-voltage systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma.
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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