These Three Companies Keep Powering On! Entergy Corporation (ETR) and More

Powering the Super Bowl turned out to be quite the momentous task. Those who were watching the game found out that a little outage could cause a 30-minute delay in the game. Can you just imagine how much power the Superdome was using at that time? How about the millions of homes around the nation with their TV sets on or the countless fridges that were working overtime to keep the beer cold? All of this adds up to a whole lot of power that the utility companies of the nation make a ton of cash from.

Who Was Powering the Super Bowl?

The company powering the Super Bowl at the time of outage was Entergy Corporation (NYSE:ETR). Entergy operates a utility division that sells power in Arkansas, Mississippi, Texas, and parts of Louisiana, including the city of New Orleans. While investigations are underway as to the actual cause of the outage, we can’t put fault on Entergy, a company that actually looks like a good investment at first glance.

Entergy is an $11.5 billion company that gives investors a dividend yield of 5.1%, which is nothing to scoff at. The P/E ratio isn’t too high either, sitting at 16.3.  The growth paints a pretty bad picture of Entergy, but it’s not something that I’m worried about. Revenue growth over the last five years has been -1.99%, and EPS growth over the same time period has been running at -1.42%. Analysts see further drops along the horizon, but I think that dividend is more than enough to keep investors around, and if those further drops are guaranteed then they’re more than likely already priced into the stock.

While Entergy may be losing slightly on EPS, they have an above average five-year ROI at 6.5%, while the industry as a whole has an ROI of 3.8%. The company is also attractively priced when looking at metrics such as price to sales, price to book, and price to tangible book, where they are priced 1.11, 1.25, and 1.31 times, respectively.

The Competitors

Entergy is one of many electric utility companies operating in the United States. In terms of size, it sits right in the middle with its $11.5 billion market cap. Sitting nearer to the top of the electric providers pile is Duke Energy Corp (NYSE:DUK) and NextEra Energy, Inc. (NYSE:NEE).

Duke Energy comes into this battle with a $48 billion market cap and more than four million customers located in five states. The majority of Duke’s market cap comes from their power generation arm, which is in operation throughout the United States and Latin America.