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How Has Westar Energy Performed in a Competitive Market?

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Nov. 4 2015, Updated 7:17 p.m. ET

Westar Energy and its peers

In this article, we’ll compare Westar Energy (WR) to its industry peers in terms of some key metrics:

  • The PE (price-to-earnings) ratios of Westar Energy, Xcel Energy (XEL), Ameren (AEE), Great Plains Energy (GXP), and Alliant Energy (LNT) are 17.4x, 19.9x, 19.6x, 18.5x, and 17.5x, respectively.

  • The PBV (price-to-book value) ratios of Westar, Xcel, Ameren, Great Plains, and Alliant are 1.5x, 1.8x, 1.6x, 1.2x, and 1.9x, respectively.

Thus, Westar’s peers have outperformed it based on PE and PBV.

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ETFs that invest in Westar

The PowerShares DWA Utilities Momentum ETF (PUI) invests 2.2% of its holdings in Westar. The ETF tracks an index of US utility companies selected and weighted by price momentum.

The PowerShares High Yield Equity Dividend Achievers ETF (PEY) invests 2.0% of its holdings in Westar. The ETF aims to track a yield-weighted index of US companies that have increased their annual dividends for at least ten consecutive years.

The First Trust Utilities AlphaDEX ETF (FXU) invests 1.7% of its holdings in Westar. The ETF tracks a tiered, equal-weighted index of US utility companies selected from the Russell 1000.

Westar Energy compared to its ETFs

Now let’s look at Westar compared to its ETFs:

  • The year-to-date price movements of Westar, PUI, PEY, and FXU are -1.3%, -4.0%, 4.4%, and -4.5%, respectively.
  • The PE ratios of Westar, PUI, PEY, and FXU are 17.4x, 19.5x, 19.6x, and 15.8x, respectively.
  • The PBV ratios of Westar, PUI, PEY, and FXU are 1.5x, 1.7x, 2.0x, and 1.5x, respectively.

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

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