Analyzing MDU Resources Group (MDU) and Its Competitors

MDU Resources Group (NYSE:MDU) is one of 52 public companies in the “Multi – Utilities” industry, but how does it compare to its rivals? We will compare MDU Resources Group to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, dividends, risk, profitability and valuation.

Risk & Volatility

MDU Resources Group has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, MDU Resources Group’s rivals have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

71.4% of MDU Resources Group shares are held by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are held by institutional investors. 0.5% of MDU Resources Group shares are held by company insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MDU Resources Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MDU Resources Group	$1.83 billion	$190.40 million	20.02
MDU Resources Group Competitors	$16.50 billion	$269.64 million	33.99

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

Profitability

This table compares MDU Resources Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDU Resources Group	10.33%	6.74%	2.52%
MDU Resources Group Competitors	9.09%	14.89%	4.08%

Analyst Ratings

This is a summary of current recommendations and price targets for MDU Resources Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDU Resources Group	0	4	2	0	2.33
MDU Resources Group Competitors	1054	4116	4432	87	2.37

MDU Resources Group presently has a consensus target price of $23.75, indicating a potential upside of 27.59%. As a group, “Multi – Utilities” companies have a potential upside of 29.69%. Given MDU Resources Group’s rivals stronger consensus rating and higher probable upside, analysts plainly believe MDU Resources Group has less favorable growth aspects than its rivals.

Dividends

MDU Resources Group pays an annual dividend of $0.58 per share and has a dividend yield of 3.1%. MDU Resources Group pays out 62.4% 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. MDU Resources Group has increased its dividend for 1 consecutive years. MDU Resources Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

MDU Resources Group rivals beat MDU Resources Group on 13 of the 15 factors compared.

MDU Resources Group Company Profile

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.