Head to Head Survey: Verbund (OEZVY) vs. Its Peers

Verbund (OTCMKTS:OEZVY) is one of 141 public companies in the “Independent Power & Renewable Electricity Producers” industry, but how does it weigh in compared to its peers? We will compare Verbund to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Insider & Institutional Ownership

35.2% of shares of all “Independent Power & Renewable Electricity Producers” companies are held by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are held 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.

Dividends

Verbund pays an annual dividend of $0.29 per share and has a dividend yield of 2.0%. Verbund pays out 290.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 275.6% of their earnings in the form of a dividend. Verbund lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Verbund and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Verbund	N/A	N/A	145.80
Verbund Competitors	$8.60 billion	$816.08 million	20.21

Verbund’s peers have higher revenue and earnings than Verbund. Verbund 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Verbund and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verbund	4	0	0	0	1.00
Verbund Competitors	933	2937	3719	180	2.40

As a group, “Independent Power & Renewable Electricity Producers” companies have a potential upside of 148.55%. Given Verbund’s peers stronger consensus rating and higher possible upside, analysts plainly believe Verbund has less favorable growth aspects than its peers.

Profitability

This table compares Verbund and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verbund	N/A	N/A	N/A
Verbund Competitors	-38.57%	13.37%	0.70%

Summary

Verbund peers beat Verbund on 11 of the 13 factors compared.

Verbund Company Profile

VERBUND AG, together with its subsidiaries, generates, trades, and sells electricity to energy exchange markets, traders, electric utilities and industrial companies, and households and commercial customers. It operates through Hydro, New Renewables, Sales, Grid, and All Other segments. The company operates hydropower plants with a capacity of 8,417 megawatts (MW); wind farms with a capacity of 798 MW; solar power with a capacity of 253 MW; and two thermal power plants. It also owns and operates electricity transmission network, and gas transmission pipeline and distribution network in Austria, as well as trades and sells gas. VERBUND AG was founded in 1947 and is headquartered in Vienna, Austria.