Head-To-Head Review: Avista (AVA) versus The Competition

Avista (NYSE:AVA – Get Free Report) is one of 52 publicly-traded companies in the “Multi – Utilities” industry, but how does it contrast to its competitors? We will compare Avista to related companies based on the strength of its institutional ownership, valuation, dividends, profitability, risk, earnings and analyst recommendations.

Volatility and Risk

Avista has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Avista’s competitors have a beta of 0.68, suggesting that their average share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Avista and its competitors, as reported by MarketBeat.

Avista presently has a consensus price target of $38.75, suggesting a potential downside of 3.17%. As a group, “Multi – Utilities” companies have a potential upside of 30.02%. Given Avista’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Avista has less favorable growth aspects than its competitors.

Dividends

Avista pays an annual dividend of $1.97 per share and has a dividend yield of 4.9%. Avista pays out 66.1% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.3% and pay out 33.6% of their earnings in the form of a dividend. Avista has increased its dividend for 23 consecutive years. Avista lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Avista and its competitors revenue, earnings per share (EPS) and valuation.

Avista’s competitors have higher revenue and earnings than Avista. Avista is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

85.2% of Avista shares are owned by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are owned by institutional investors. 0.8% of Avista shares are owned by insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Avista and its competitors’ net margins, return on equity and return on assets.

Summary

Avista competitors beat Avista on 13 of the 15 factors compared.

Avista Company Profile

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Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.