Investing

The 10 Biggest Utilities With Over 50% Gross Margin

Aman Jain

Published: February 21, 2023 10:51 pm

Profits for utility companies vary widely depending on region to region. Despite this, the utility sector enjoys relatively high profit margins, primarily due to barriers to entry and other legislative restrictions on competition. This allows utilities to operate as de facto monopolies in the regions they operate.

Although utility companies need to go through the rate-making process to fix the prices that they can charge to their customers, they still enjoy a decent profit margin. Let’s take a look at the 10 biggest utilities with over 50% gross margin.

10 Biggest Utilities With Over 50% Gross Margin

We have used the market capitalization data (as of Feb. 17, 2023) to rank the 10 biggest utilities with over 50% gross margin. Here are the 10 biggest utilities with over 50% gross margin:

10. Edison International

Edison International (NYSE:EIX) shares are up by over 9% in the last three months, bringing their 12-month return to over 12%. As of this writing, Edison International shares are trading at around $67.30 with a 52-week range of $54.45 to $73.32, giving the company a market capitalization of more than $25.60 billion. It has a PE ratio of more than 35.70.

9. WEC Energy Group

WEC Energy Group Inc (NYSE:WEC) shares are down by over 3% in the last three months, bringing their 12-month return to almost 3%. As of this writing, WEC Energy Group shares are trading at around $92.30 with a 52-week range of $80.82 to $108.39, giving the company a market capitalization of more than $29 billion. It has a PE ratio of more than 20.70.

8. Consolidated Edison

Consolidated Edison, Inc. (NYSE:ED) shares are down by over 2% in the last three months, bringing their 12-month return to over 8%. As of this writing, Consolidated Edison shares are trading at around $91.60 with a 52-week range of $78.10 to $102.21, giving the company a market capitalization of more than $32.50 billion. It has a PE ratio of more than 19.60.

7. Xcel Energy

Xcel Energy Inc (NASDAQ:XEL) shares are down by over 1% in the last three months, bringing their 12-month return to over 2%. As of this writing, Xcel Energy shares are trading at around $67.60 with a 52-week range of $56.89 to $77.66, giving the company a market capitalization of more than $37.10 billion. It has a PE ratio of more than 21.30.

6. PG&E

PG&E Corporation (NYSE:PCG) shares are up by almost 4% in the last three months, bringing their 12-month return to over 36%. As of this writing, PG&E shares are trading at around $15.50 with a 52-week range of $9.64 to $16.49, giving the company a market capitalization of more than $30.90 billion. It has a PE ratio of more than 18.50.

5. Exelon

Exelon Corp (NASDAQ:EXC) shares are up by over 11% in the last three months, bringing their 12-month return to over 3%. As of this writing, Exelon shares are trading at around $42.90 with a 52-week range of $35.19 to $50.71, giving the company a market capitalization of more than $42.40 billion. It has a PE ratio of more than 19.50.

4. American Electric Power Co.

American Electric Power Company Inc (NASDAQ:AEP) shares are up by almost 1% in the last three months, bringing their 12-month return to over 7%. As of this writing, American Electric Power Co. shares are trading at around $91.70 with a 52-week range of $80.30 to $105.60, giving the company a market capitalization of more than $46.60 billion. It has a PE ratio of more than 19.

3. Dominion Energy

Dominion Energy Inc (NYSE:D) shares are down by over 1% in the last three months, bringing their 12-month return to -26%. As of this writing, Dominion Energy shares are trading at around $58 with a 52-week range of $56.96 to $88.78, giving the company a market capitalization of more than $48.40 billion. It has a PE ratio of more than 20.10.

2. Southern Co.

Southern Co (NYSE:SO) shares are up by over 1% in the last three months, bringing their 12-month return to over 4%. As of this writing, Southern Co. shares are trading at around $66 with a 52-week range of $60.71 to $80.57, giving the company a market capitalization of more than $72.60 billion. It has a PE ratio of more than 20.10.

1. Duke Energy

Duke Energy Corp (NYSE:DUK) shares are up by over 2% in the last three months, bringing their 12-month return to almost -1%. As of this writing, Duke Energy shares are trading at around $98 with a 52-week range of $83.76 to $116.33, giving the company a market capitalization of more than $75 billion. It has a PE ratio of more than 29.70.

This article originally appeared on ValueWalk