Vectren (VVC) and ROTORK PLC/ADR (RTOXY) Head-To-Head Analysis

Vectren (NYSE:VVC) and ROTORK PLC/ADR (OTCMKTS:RTOXY) are both mid-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Vectren and ROTORK PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vectren 7.37% 12.10% 3.58%
ROTORK PLC/ADR N/A N/A N/A



Risk and Volatility

Vectren has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, ROTORK PLC/ADR has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vectren and ROTORK PLC/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vectren $2.66 billion 2.25 $216.00 million $2.60 27.66
ROTORK PLC/ADR $827.31 million 3.20 $71.67 million $0.55 22.11

Vectren has higher revenue and earnings than ROTORK PLC/ADR. ROTORK PLC/ADR is trading at a lower price-to-earnings ratio than Vectren, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vectren and ROTORK PLC/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vectren 0 4 0 0 2.00
ROTORK PLC/ADR 0 0 0 0 N/A

Vectren presently has a consensus price target of $63.67, indicating a potential downside of 11.46%. Given Vectren’s higher probable upside, equities research analysts clearly believe Vectren is more favorable than ROTORK PLC/ADR.

Insider & Institutional Ownership

64.4% of Vectren shares are owned by institutional investors. 0.1% of Vectren shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Vectren pays an annual dividend of $1.92 per share and has a dividend yield of 2.7%. ROTORK PLC/ADR pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Vectren pays out 73.8% of its earnings in the form of a dividend. ROTORK PLC/ADR pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Vectren has increased its dividend for 59 consecutive years. Vectren is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Vectren beats ROTORK PLC/ADR on 12 of the 15 factors compared between the two stocks.

About Vectren

Vectren Corporation provides energy delivery services to residential, commercial, and industrial and other contract customers. The company offers natural gas distribution and transportation services, and electric transmission and distribution services; and owns and operates coal-fired, natural gas or oil-fired, and landfill gas electric generating facilities with an installed generating capacity of 1,248 megawatts. Its electric transmission system consists of approximately 1,028 circuit miles of 345, 138, and 69 kilovolt lines, and 34 substations; and distribution system comprises 4,543 circuit miles of lower voltage overhead lines and 462 trench miles of conduit containing 2,405 circuit miles of underground distribution cable, as well as 85 distribution substations and 54,919 distribution transformers. The company also provides underground pipeline construction and repair services; and energy performance contracting and sustainable infrastructure, such as renewables, distributed generation, and combined heat and power projects, as well as invests in energy-related opportunities and services. It serves various industries comprising automotive assembly, parts, and accessories; feed, flour, and grain processing; metal castings and plastic products; gypsum products; electrical equipment, metal specialties, and glass and steel finishing; pharmaceutical and nutritional products; gasoline and oil products; ethanol; and coal mining. The company supplies natural gas services to approximately 1,022,000 customers in Indiana and Ohio; and electric services to approximately 145,200 customers in Indiana. Vectren Corporation was incorporated in 1999 and is headquartered in Evansville, Indiana.

About ROTORK PLC/ADR

Rotork plc designs, manufactures, and markets actuators and flow control products worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric actuators and control systems, including intelligent multi-turn and part-turn valve actuators, part-turn/rotary and linear control valve actuators, heavy-duty part-turn/rotary and linear valve actuators, small part-turn/rotary valve actuators, and network control systems, as well as explosion proof actuators, sensors, switches, and controls. It also provides pneumatic and hydraulic rotary and linear, electro-hydraulic, subsea, and vane-type pneumatic valve actuators, as well as smart valve monitoring and control systems. In addition, the company offers manual and motorized multi-turn gearboxes and quarter-turn gearboxes; and worm gear quarter-turn, subsea quarter-turn, and override quarter-turn gear operators, as well as mounting brackets, extension shafts, pedestals, and accessories for the valve and actuator industry. Further, it provides instrumentation and control products, such as pneumatic pressure regulators, electro-pneumatic transducers, pneumatic air volume boosters, and pneumatic relays. Additionally, the company offers pneumatic valves and manifolds, which include air preparation, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. It also provides emergency and planned service, including installation, commissioning, and upgrading control systems, as well as troubleshooting and repair of damaged or deteriorating assets; and actuator overhauls, shutdown outages, preventative maintenance, technical support, and training services. It primarily serves power generation, oil and gas, water and sewage, marine, mining, and other industries. The company was incorporated in 1957 and is headquartered in Bath, the United Kingdom.

Receive News & Ratings for Vectren Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vectren and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply