October 6, 2022

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Financial Analysis: Xcel Energy (XEL) vs. Its Competitors

Xcel Energy (NASDAQ: XEL) is one of 31 public companies in the “Electric & other services combined” industry, but how does it weigh in compared to its peers? We will compare Xcel Energy to related companies based on the strength of its analyst recommendations, earnings, dividends, institutional ownership, profitability, valuation and risk.

Volatility and Risk

Xcel Energy has a beta of 0.28, indicating that its share price is 72{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} less volatile than the S&P 500. Comparatively, Xcel Energy’s peers have a beta of 0.59, indicating that their average share price is 41{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Xcel Energy 12.50{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} 10.56{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} 2.73{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}
Xcel Energy Competitors 1.59{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} 10.01{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} 2.41{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}

Earnings & Valuation

This table compares Xcel Energy and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Xcel Energy $11.53 billion $1.37 billion 27.07
Xcel Energy Competitors $8.73 billion $451.22 million 17.50

Xcel Energy has higher revenue and earnings than its peers. Xcel Energy 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.

Institutional and Insider Ownership

77.9{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of Xcel Energy shares are owned by institutional investors. Comparatively, 71.6{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of shares of all “Electric & other services combined” companies are owned by institutional investors. 0.2{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of Xcel Energy shares are owned by insiders. Comparatively, 4.7{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of shares of all “Electric & other services combined” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Xcel Energy pays an annual dividend of $1.72 per share and has a dividend yield of 2.4{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}. Xcel Energy pays out 65.2{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of its earnings in the form of a dividend. As a group, “Electric & other services combined” companies pay a dividend yield of 3.3{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} and pay out 63.6{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of their earnings in the form of a dividend. Xcel Energy has raised its dividend for 16 consecutive years. Xcel Energy lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for Xcel Energy and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcel Energy 0 0 0 0 N/A
Xcel Energy Competitors 463 1955 1399 14 2.25

As a group, “Electric & other services combined” companies have a potential upside of 6.75{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}. Given Xcel Energy’s peers higher possible upside, analysts clearly believe Xcel Energy has less favorable growth aspects than its peers.

Summary

Xcel Energy beats its peers on 7 of the 12 factors compared.

About Xcel Energy

Xcel Energy Inc., through its subsidiaries, generates, purchases, transmits, distributes, and sells electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through coal, nuclear, natural gas, hydroelectric, solar, biomass, oil, wood/refuse, and wind energy sources. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects, as well as procures equipment for construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company sells electricity to approximately 3.7 million customers; and natural gas to approximately 2.1 million customers. Xcel Energy Inc. was founded in 1909 and is headquartered in Minneapolis, Minnesota.

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