Chesapeake Utilities Corporation (NYSE: CPK) is one of 14 public companies in the “Natural Gas Distribution” industry, but how does it contrast to its peers? We will compare Chesapeake Utilities Corporation to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Insider and Institutional Ownership

60.4% of Chesapeake Utilities Corporation shares are owned by institutional investors. Comparatively, 65.4% of shares of all “Natural Gas Distribution” companies are owned by institutional investors. 4.2% of Chesapeake Utilities Corporation shares are owned by company insiders. Comparatively, 2.2% of shares of all “Natural Gas Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Chesapeake Utilities Corporation pays an annual dividend of $1.30 per share and has a dividend yield of 1.6%. Chesapeake Utilities Corporation pays out 48.3% of its earnings in the form of a dividend. As a group, “Natural Gas Distribution” companies pay a dividend yield of 2.4% and pay out 62.3% of their earnings in the form of a dividend. Chesapeake Utilities Corporation has increased its dividend for 13 consecutive years.

Profitability

This table compares Chesapeake Utilities Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Utilities Corporation 7.58% 9.58% 3.46%
Chesapeake Utilities Corporation Competitors 4.59% -11.07% 3.67%

Analyst Ratings

This is a summary of recent ratings and target prices for Chesapeake Utilities Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Utilities Corporation 0 5 0 0 2.00
Chesapeake Utilities Corporation Competitors 59 208 227 5 2.36

Chesapeake Utilities Corporation presently has a consensus price target of $73.00, suggesting a potential downside of 10.87%. As a group, “Natural Gas Distribution” companies have a potential downside of 0.34%. Given Chesapeake Utilities Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Chesapeake Utilities Corporation has less favorable growth aspects than its peers.

Volatility & Risk

Chesapeake Utilities Corporation has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Chesapeake Utilities Corporation’s peers have a beta of 0.48, suggesting that their average share price is 53% less volatile than the S&P 500.

Earnings and Valuation

This table compares Chesapeake Utilities Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Chesapeake Utilities Corporation $498.86 million $44.67 million 30.45
Chesapeake Utilities Corporation Competitors $2.04 billion $171.22 million 22.76

Chesapeake Utilities Corporation’s peers have higher revenue and earnings than Chesapeake Utilities Corporation. Chesapeake Utilities Corporation 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.

Summary

Chesapeake Utilities Corporation peers beat Chesapeake Utilities Corporation on 10 of the 15 factors compared.

Chesapeake Utilities Corporation Company Profile

Chesapeake Utilities Corporation (Chesapeake) is an energy company. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Company provides natural gas distribution and transmission; natural gas supply, gathering, processing and marketing; electric distribution and generation; propane distribution; propane and crude oil wholesale marketing; steam generation, and other energy-related services. The Regulated Energy segment includes the Company’s natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane and crude oil wholesale marketing, natural gas marketing and unregulated natural gas supply, gathering and processing, electricity and steam generation and other unregulated energy-related services to customers.

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