Reviewing Pacific Gas & Electric (NYSE:PCG) and IDACORP (NYSE:IDA)

Pacific Gas & Electric (NYSE:PCG) and IDACORP (NYSE:IDA) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Pacific Gas & Electric and IDACORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Gas & Electric	10.84%	11.40%	2.50%
IDACORP	17.59%	9.35%	3.27%

Earnings & Valuation

This table compares Pacific Gas & Electric and IDACORP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Gas & Electric	$24.94 billion	1.60	$2.51 billion	$1.18	15.36
IDACORP	$1.81 billion	4.32	$289.17 million	$5.82	24.80

Pacific Gas & Electric has higher revenue and earnings than IDACORP. Pacific Gas & Electric is trading at a lower price-to-earnings ratio than IDACORP, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Pacific Gas & Electric has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pacific Gas & Electric and IDACORP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Gas & Electric	1	6	7	0	2.43
IDACORP	1	1	8	0	2.70

Pacific Gas & Electric currently has a consensus target price of $20.55, suggesting a potential upside of 13.35%. IDACORP has a consensus target price of $137.67, suggesting a potential downside of 4.62%. Given Pacific Gas & Electric’s higher possible upside, analysts plainly believe Pacific Gas & Electric is more favorable than IDACORP.

Institutional & Insider Ownership

78.6% of Pacific Gas & Electric shares are held by institutional investors. Comparatively, 89.1% of IDACORP shares are held by institutional investors. 0.1% of Pacific Gas & Electric shares are held by company insiders. Comparatively, 0.5% of IDACORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.4%. Pacific Gas & Electric pays out 16.9% of its earnings in the form of a dividend. IDACORP pays out 60.5% 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. Pacific Gas & Electric has increased its dividend for 1 consecutive years and IDACORP has increased its dividend for 13 consecutive years. IDACORP is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

IDACORP beats Pacific Gas & Electric on 12 of the 17 factors compared between the two stocks.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.