Critical Analysis: Alaska Power & Telephone (APTL) and The Competition

Alaska Power & Telephone (OTCMKTS:APTL) is one of 101 publicly-traded companies in the “Electric services” industry, but how does it compare to its peers? We will compare Alaska Power & Telephone to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

59.1% of shares of all “Electric services” companies are owned by institutional investors. 6.8% of shares of all “Electric services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Alaska Power & Telephone has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Alaska Power & Telephone’s peers have a beta of -0.97, suggesting that their average stock price is 197% less volatile than the S&P 500.

Valuation & Earnings

This table compares Alaska Power & Telephone and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alaska Power & Telephone	$64.21 million	$6.15 million	9.08
Alaska Power & Telephone Competitors	$1,252.09 billion	$582.15 million	3.70

Alaska Power & Telephone’s peers have higher revenue and earnings than Alaska Power & Telephone. Alaska Power & Telephone is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Alaska Power & Telephone pays an annual dividend of $1.57 per share and has a dividend yield of 2.9%. Alaska Power & Telephone pays out 26.7% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.1% and pay out 70.9% of their earnings in the form of a dividend.

Profitability

This table compares Alaska Power & Telephone and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alaska Power & Telephone	10.95%	N/A	N/A
Alaska Power & Telephone Competitors	1.41%	7.60%	1.54%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Alaska Power & Telephone and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alaska Power & Telephone	0	0	0	0	N/A
Alaska Power & Telephone Competitors	1051	4712	4569	90	2.35

As a group, “Electric services” companies have a potential upside of 1.45%. Given Alaska Power & Telephone’s peers higher possible upside, analysts clearly believe Alaska Power & Telephone has less favorable growth aspects than its peers.

Summary

Alaska Power & Telephone peers beat Alaska Power & Telephone on 8 of the 12 factors compared.

Alaska Power & Telephone Company Profile

Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.