Korea Electric Power Corporation (KEP) and Consolidated Edison (ED) Financial Comparison

Korea Electric Power Corporation (NYSE: KEP) and Consolidated Edison (NYSE:ED) are both large-cap electric utilities – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Korea Electric Power Corporation and Consolidated Edison’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korea Electric Power Corporation 7.44% 6.06% 2.47%
Consolidated Edison 10.42% 8.42% 2.52%

Earnings and Valuation

This table compares Korea Electric Power Corporation and Consolidated Edison’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Korea Electric Power Corporation $51.76 billion 0.43 $6.34 billion $2.11 8.22
Consolidated Edison $12.08 billion 2.22 $1.25 billion $3.99 21.69

Korea Electric Power Corporation has higher revenue and earnings than Consolidated Edison. Korea Electric Power Corporation is trading at a lower price-to-earnings ratio than Consolidated Edison, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Korea Electric Power Corporation has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Consolidated Edison has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Dividends

Consolidated Edison pays an annual dividend of $2.76 per share and has a dividend yield of 3.2%. Korea Electric Power Corporation does not pay a dividend. Consolidated Edison pays out 69.2% of its earnings in the form of a dividend. Consolidated Edison has increased its dividend for 42 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Korea Electric Power Corporation and Consolidated Edison, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korea Electric Power Corporation 1 4 2 0 2.14
Consolidated Edison 4 5 1 0 1.70

Consolidated Edison has a consensus price target of $78.94, indicating a potential downside of 8.77%. Given Consolidated Edison’s higher possible upside, analysts plainly believe Consolidated Edison is more favorable than Korea Electric Power Corporation.

Insider and Institutional Ownership

4.6% of Korea Electric Power Corporation shares are held by institutional investors. Comparatively, 55.3% of Consolidated Edison shares are held by institutional investors. 1.0% of Korea Electric Power Corporation shares are held by insiders. Comparatively, 0.2% of Consolidated Edison shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Consolidated Edison beats Korea Electric Power Corporation on 10 of the 17 factors compared between the two stocks.

About Korea Electric Power Corporation

Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity. The nuclear power generation segment, which is engaged in the nuclear, hydro, pumping-up power generation. The thermal power generation segment, which is engaged in bituminous coal, anthracite, liquefied natural gas (LNG) power generation. And the Other Segment comprises operations related to the plant design, power generation equipment assembly, nuclear raw materials supplement, electricity IT service, renewable source power generation and financial investment on overseas businesses.

About Consolidated Edison

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

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