PPL (NYSE:PPL) and Premier (OTCMKTS:PRHL) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and Risk

PPL has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Premier has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500.

Earnings and Valuation

This table compares PPL and Premier’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PPL $7.79 billion 2.87 $1.83 billion $2.40 12.90
Premier $2.70 million 3.28 -$10.52 million N/A N/A

PPL has higher revenue and earnings than Premier.

Profitability

This table compares PPL and Premier’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PPL 23.47% 14.91% 3.98%
Premier N/A N/A N/A

Institutional & Insider Ownership

74.7% of PPL shares are owned by institutional investors. 0.3% of PPL shares are owned by insiders. Comparatively, 39.3% of Premier shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

PPL pays an annual dividend of $1.65 per share and has a dividend yield of 5.3%. Premier does not pay a dividend. PPL pays out 68.8% of its earnings in the form of a dividend. PPL has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PPL and Premier, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PPL 1 7 2 0 2.10
Premier 0 0 0 0 N/A

PPL presently has a consensus target price of $34.38, indicating a potential upside of 10.99%. Given PPL’s higher probable upside, research analysts clearly believe PPL is more favorable than Premier.

Summary

PPL beats Premier on 10 of the 14 factors compared between the two stocks.

About PPL

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through three segments: U.K. Regulated, Kentucky Regulated, and Pennsylvania Regulated. It serves approximately 414,000 electric and 328,000 natural gas customers in Louisville and adjacent areas in Kentucky; 527,000 electric customers in central, southeastern, and western Kentucky; and 28,000 electric customers in 5 counties in southwestern Virginia. The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania; operates electricity distribution networks in the United Kingdom; generates electricity from coal, gas, hydro, and solar sources in Kentucky; and sells wholesale electricity to 10 municipalities in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

About Premier

Premier Holding Corporation, through its subsidiaries, provides energy services in the United States. It offers various electricity plans and upgrades to a facility's energy infrastructure to commercial middle market companies and residential customers. The company also provides deregulated power brokerage services for small businesses, warehouses, and distribution centers. The company was formerly known as OVM International Holding Corporation and changed its name to Premier Holding Corporation in November 2008. Premier Holding Corporation was founded in 1971 and is based in Tustin, California.

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