MDU Resources Group (MDU) versus Its Competitors Critical Analysis
MDU Resources Group (NYSE: MDU) is one of 21 public companies in the “Multiline Utilities” industry, but how does it contrast to its rivals? We will compare MDU Resources Group to related companies based on the strength of its dividends, valuation, earnings, profitability, risk, institutional ownership and analyst recommendations.
This table compares MDU Resources Group and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MDU Resources Group||5.37%||10.24%||3.76%|
|MDU Resources Group Competitors||8.68%||8.64%||1.99%|
Institutional and Insider Ownership
63.6% of MDU Resources Group shares are held by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 1.0% of MDU Resources Group 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for MDU Resources Group and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MDU Resources Group||0||2||1||0||2.33|
|MDU Resources Group Competitors||362||1065||833||9||2.22|
MDU Resources Group currently has a consensus target price of $32.00, suggesting a potential upside of 22.00%. As a group, “Multiline Utilities” companies have a potential upside of 6.74%. Given MDU Resources Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MDU Resources Group is more favorable than its rivals.
Volatility and Risk
MDU Resources Group has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, MDU Resources Group’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.
MDU Resources Group pays an annual dividend of $0.77 per share and has a dividend yield of 2.9%. MDU Resources Group pays out 67.0% 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. MDU Resources Group has increased its dividend for 7 consecutive years.
Earnings & Valuation
This table compares MDU Resources Group and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MDU Resources Group||$4.23 billion||$617.43 million||22.81|
|MDU Resources Group Competitors||$8.16 billion||$2.17 billion||20.52|
MDU Resources Group’s rivals have higher revenue and earnings than MDU Resources Group. MDU Resources Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
MDU Resources Group rivals beat MDU Resources Group on 8 of the 15 factors compared.
About MDU Resources Group
MDU Resources Group, Inc. is engaged in regulated energy delivery and construction materials and services business. The Company’s businesses segments are electric, natural gas distribution, pipeline and midstream, construction materials and contracting, and construction services. The electric segment generates, transmits and distributes electricity. The natural gas distribution segment distributes natural gas. The pipeline and midstream segment provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering. The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, asphalt, liquid asphalt and other value-added products. The construction services segment provides utility construction services in constructing and maintaining electric and communication lines, and external lighting and traffic signalization.
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