Critical Analysis: IDACORP (NYSE:IDA) & Summer Energy (OTCMKTS:SUME)

Summer Energy (OTCMKTS:SUME) and IDACORP (NYSE:IDA) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Summer Energy has a beta of -123.51, suggesting that its share price is 12,451% less volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Summer Energy and IDACORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summer Energy	N/A	N/A	N/A
IDACORP	15.04%	9.16%	3.25%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Summer Energy and IDACORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summer Energy	0	0	0	0	N/A
IDACORP	0	6	0	0	2.00

IDACORP has a consensus price target of $101.50, indicating a potential downside of 2.86%. Given IDACORP’s higher possible upside, analysts plainly believe IDACORP is more favorable than Summer Energy.

Valuation and Earnings

This table compares Summer Energy and IDACORP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summer Energy	$239.88 million	0.06	$13.74 million	N/A	N/A
IDACORP	$1.82 billion	3.05	$261.20 million	$4.98	20.98

IDACORP has higher revenue and earnings than Summer Energy.

Institutional and Insider Ownership

89.1% of IDACORP shares are owned by institutional investors. 56.8% of Summer Energy shares are owned by insiders. Comparatively, 0.5% of IDACORP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

IDACORP beats Summer Energy on 9 of the 10 factors compared between the two stocks.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.