CenterPoint Energy (NYSE:CNP) demonstrates significant advantages over Centuri (NYSE:CTRI) in various financial metrics, according to a recent analysis. The assessment, based on profitability, institutional ownership, earnings, risk, valuation, analyst recommendations, and dividends, indicates that investors may favor CenterPoint Energy as the superior stock.
Analyst Ratings and Market Perceptions
Current ratings from MarketBeat.com reflect a consensus target price for Centuri of $23.25, suggesting a potential downside of 10.38%. In contrast, CenterPoint Energy boasts a consensus target price of $41.64, which implies a potential upside of 8.76%. Analysts attribute a stronger consensus rating to CenterPoint Energy, indicating a more favorable outlook compared to Centuri.
Profitability and Risk Assessment
In terms of volatility, Centuri has a beta of 0.95, indicating its stock is 5% less volatile than the S&P 500. CenterPoint Energy, on the other hand, has a beta of 0.56, reflecting a stock price that is 44% less volatile than the benchmark index. This reduced volatility suggests that CenterPoint Energy may present a safer investment option.
Institutional ownership plays a crucial role in stock performance. Approximately 91.8% of CenterPoint Energy shares are held by institutional investors, compared to just 0.2% of Centuri shares owned by company insiders. The heightened institutional ownership in CenterPoint Energy signals confidence among large investors regarding its long-term performance.
Valuation and Earnings Comparison
When examining revenue and earnings, CenterPoint Energy consistently outperforms Centuri. The former not only generates higher revenue but also reports stronger earnings per share (EPS). Additionally, CenterPoint Energy is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable investment of the two.
In summary, CenterPoint Energy surpasses Centuri across 11 of the 14 factors analyzed, showcasing its strengths in profitability, risk, and market perception.
About Centuri: Centuri Holdings, Inc. operates as a utility infrastructure services company based in Phoenix, Arizona. Founded in 1909, the company specializes in gas utility services, including maintenance, repair, installation, and replacement for natural gas local distribution utilities. It also offers electric utility services, focusing on the design, maintenance, and upgrade of transmission and distribution infrastructure.
About CenterPoint Energy: CenterPoint Energy, Inc., established in 1866 and headquartered in Houston, Texas, operates as a public utility holding company in the United States. The company runs two segments: Electric and Natural Gas. The Electric segment provides transmission and distribution services, while the Natural Gas segment focuses on intrastate sales and distribution across various states, including Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas.
Investors interested in utility stocks should consider these findings as they evaluate their options in the current market landscape.
