Head-To-Head Analysis: Entergy (NYSE:ETR) versus AK PWR & TEL CO/SH SH (NYSE:APTL)

Entergy (NYSE:ETR) and AK PWR & TEL CO/SH SH (OTCMKTS:APTL) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Entergy and AK PWR & TEL CO/SH SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entergy 9.04% 15.17% 2.68%
AK PWR & TEL CO/SH SH N/A N/A N/A

Valuation & Earnings

This table compares Entergy and AK PWR & TEL CO/SH SH’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entergy $11.01 billion 1.84 $862.55 million $7.31 14.60
AK PWR & TEL CO/SH SH N/A N/A N/A N/A N/A

Entergy has higher revenue and earnings than AK PWR & TEL CO/SH SH.

Analyst Ratings

This is a breakdown of current ratings and target prices for Entergy and AK PWR & TEL CO/SH SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entergy 0 4 7 0 2.64
AK PWR & TEL CO/SH SH 0 0 0 0 N/A

Entergy currently has a consensus price target of $94.82, suggesting a potential downside of 11.18%. Given Entergy’s higher possible upside, equities analysts clearly believe Entergy is more favorable than AK PWR & TEL CO/SH SH.

Institutional and Insider Ownership

87.9% of Entergy shares are owned by institutional investors. 0.3% of Entergy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Entergy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, AK PWR & TEL CO/SH SH has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Dividends

Entergy pays an annual dividend of $3.64 per share and has a dividend yield of 3.4%. AK PWR & TEL CO/SH SH pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. Entergy pays out 49.8% of its earnings in the form of a dividend. Entergy has raised its dividend for 4 consecutive years. Entergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Entergy beats AK PWR & TEL CO/SH SH on 11 of the 12 factors compared between the two stocks.

Entergy Company Profile

Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It generates electricity through gas/oil, nuclear, coal, hydro, and solar power sources. The company's Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and distributes natural gas. Its Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and owning interests in non-nuclear power plants that sell electric power to wholesale customers. This segment sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 30,000 megawatts (MW) of electric generating capacity, including approximately 9,000 MW of nuclear power. The company delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1949 and is based in New Orleans, Louisiana.

AK PWR & TEL CO/SH SH Company Profile

Alaska Power & Telephone Company, through its subsidiaries, provides regulated electric and telephone services in rural portions of Alaska. It operates through Electric and Telecommunications segments. The Electric segment offers retail and wholesale electric services, including hydroelectric and diesel generation facilities. The Telecommunications segment provides local telephone services. The company also offers broadband, Internet, wireless, long distance, and engineering services. Alaska Power & Telephone Company was founded in 1957 and is based in Port Townsend, Washington.

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