UNS Energy (NYSE: UNS) and El Paso Electric (NYSE:EE) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Profitability

This table compares UNS Energy and El Paso Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UNS Energy N/A N/A N/A
El Paso Electric 10.13% 8.44% 2.67%

Dividends

El Paso Electric pays an annual dividend of $1.34 per share and has a dividend yield of 2.3%. UNS Energy does not pay a dividend. El Paso Electric pays out 55.8% of its earnings in the form of a dividend. El Paso Electric has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for UNS Energy and El Paso Electric, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UNS Energy 0 0 0 0 N/A
El Paso Electric 1 3 0 0 1.75

El Paso Electric has a consensus target price of $55.50, suggesting a potential downside of 5.61%.

Institutional & Insider Ownership

98.9% of El Paso Electric shares are owned by institutional investors. 1.3% of El Paso Electric shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares UNS Energy and El Paso Electric’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UNS Energy N/A N/A N/A N/A N/A
El Paso Electric $886.94 million 2.69 $96.76 million $2.40 24.50

El Paso Electric has higher revenue and earnings than UNS Energy.

Summary

El Paso Electric beats UNS Energy on 8 of the 9 factors compared between the two stocks.

About UNS Energy

UNS Energy Corporation, formerly UniSource Energy Corporation, is a holding company. The Company owns the outstanding common stock of Tucson Electric Power Company (TEP), UniSource Energy Services, Inc. (UES), UniSource Energy Development Company (UED), and Millennium Energy Holdings, Inc. (Millennium). It operates in three segments: TEP, UNS Gas, Inc. (UNS Gas) and UNS Electric, Inc. (UNS Electric). TEP is an electric utility serving the community of Tucson, Arizona. UNS Gas is a gas distribution company serving approximately 148,000 retail customers in Mohave, Yavapai, Coconino, and Navajo counties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. UNS Electric is a vertically integrated electric utility company serving approximately 91,000 retail customers in Mohave and Santa Cruz counties. In July 2011, UNS Electric purchased the Black Mountain Generating Station (BMGS) from UED.

About El Paso Electric

El Paso Electric Company is a public utility company. As of December 31, 2016, the Company was engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. As of December 31, 2016, the Company owned or had ownership interests in several electrical generating facilities providing it with a generating capability of approximately 2,080 megawatts (MW). The Company’s energy sources consists of nuclear fuel, natural gas, coal, purchased power and generated by Company-owned solar photovoltaic panels. As of December 31, 2016, the Company had power purchase agreements for 107 MW from solar photovoltaic generation facilities. As of December 31, 2016, the Company served approximately 411,100 residential, commercial, industrial, public authority and wholesale customers. The Company distributes electricity to retail customers principally in El Paso, Texas and Las Cruces, New Mexico.

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