uploads/2015/11/cnp-pbv.jpg

CenterPoint Energy’s Performance against Its Peers and ETFs

By

Updated

CenterPoint Energy and its peers

In this article, we’ll compare CenterPoint Energy with its peers on multiple measures:

  • The PE (price-to-earnings) ratios of CenterPoint Energy (CNP), American Electric Power (AEP), Xcel Energy (XEL), AGL Resources (GAS), and Atmos Energy Corporation (ATO) are 15.2x, 15.8x, 20.1x, 18.4x, and 20.2x, respectively.

  • The PBV (price-to-book value) ratios of CenterPoint Energy, American Electric Power, Xcel Energy, AGL Resources, and Atmos Energy Corporation are 1.8x, 1.6x, 1.8x, 1.9x, and 2.0x, respectively.

Thus, most of these peers have outperformed CenterPoint Energy based on PE and PBV ratios.

Article continues below advertisement

ETFs that invest in CenterPoint Energy 

The Guggenheim S&P Equal Weight Utilities ETF (RYU) invests 2.9% of its holdings in CenterPoint Energy. The ETF tracks an equal-weighted index of S&P 500 utility companies.

The First Trust Utilities AlphaDEX Fund (FXU) invests 2.5% of its holdings in CenterPoint Energy. The ETF tracks a tiered equal-weighted index of US utility firms selected from the Russell 1000 Index.

The PowerShares S&P 500 High Dividend Low Volatility ETF (SPHD) invests 2.5% of its holdings in CenterPoint Energy. The ETF tracks a dividend yield-weighted index comprising the 50 least volatile names chosen from a short list of the S&P 500’s 75 highest-dividend-yielding securities.

Comparing CenterPoint Energy and its ETFs

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

  • The YTD (year-to-date) price movements of CenterPoint Energy, RYU, FXU, and SPHD are -18.1%, -3.1%, -3.4%, and 4.4%, respectively.
  • The PE ratios of CenterPoint Energy, RYU, FXU, and SPHD are 15.2x, 17.5x, 15.8x, and 20.1x, respectively.
  • The PBV ratios of CenterPoint Energy, RYU, FXU, and SPHD are 1.8x, 1.5x, 1.4x, and 2.2x, respectively.

According to the above findings, these ETFs have outperformed CenterPoint Energy based on price movement and PE ratio. However, CenterPoint Energy is ahead of most of its ETFs based on PBV ratio.

Advertisement

More From Market Realist