uploads/2015/11/ato-pe.jpg

Atmos Energy’s Performance in the Competitive Market

By

Updated

Atmos Energy and its peers

In this article, we’ll compare Atmos Energy (ATO) with its peers:

  • The PE (price-to-earnings) ratios of Atmos Energy, Xcel Energy (XEL), CenterPoint Energy (CNP), ONEOK (OKE), and NiSource (NI) are 20.4x, 20.0x, 15.3x, 23.8x, and 14.7x, respectively.

  • The PBV (price-to-book value) ratios of Atmos, Xcel, CenterPoint, ONEOK, and NiSource are 2.0x, 1.8x, 1.8x, 13.6x, and 0.94x, respectively.

Thus, Atmos Energy has outperformed its peers based on PE and PBV.

Article continues below advertisement

ETFs that invest in Atmos Energy

The PowerShares DWA Utilities Momentum ETF (PUI) invests 2.5% of its holdings in Atmos. The ETF tracks an index of US utility companies selected and weighted by price momentum.

The Alerian Energy Infrastructure ETF (ENFR) invests 2.4% of its holdings in Atmos. The ETF tracks an index of midstream MLPs, MLP affiliates, and energy infrastructure companies in the United States and Canada weighted in tiers.

The PowerShares S&P MidCap Low Volatility ETF (XMLV) invests 1.2% of its holdings in Atmos. The ETF tracks a volatility-weighted index of the 80 least-volatile S&P MidCap 400 companies.

Compared Atmos Energy and its ETFs

Now let’s compare Atmos with the ETFs that invest in it:

  • The year-to-date price movements of Atmos, PUI, ENFR, and XMLV are 15.5%, -3.5%, -24.4%, and 6.9%, respectively.
  • The PE ratios of Atmos, PUI, ENFR, and XMLV are 20.4x, 19.5x, 23.3x, and 20.2x, respectively.
  • The PBV ratios of Atmos, PUI, ENFR, and XMLV are 2.0x, 1.7x, 2.5x, and 2.2x, respectively.

According to the above findings, Atmos’s ETFs have outperformed it based on PBV. However, Atmos is ahead of most of its ETFs based on price movement and PE.

Advertisement

More From Market Realist