Research In Motion, Edison: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model downgraded utility Edison International(EIX) to "hold."

The numbers: Edison swung to a second-quarter loss of $16 million, or 3 cents a share, from a profit of $272 million, or 79 cents, in the year-earlier period as revenue declined 19% to $2.8 billion. While its operating and net margins fell into negative territory, the company's financial position improved. Its cash balance more than doubled to $2.9 billion, but Edison still has a less-than-ideal quick ratio of 0.9. A debt-to-equity ratio of 1.1 reflects its sizable debt burden.

The stock: Edison is down 1% this year, underperforming major U.S. indices. But the stock trades at a cheap price-to-earnings ratio of 9 and offers a dividend yield of 3.9%, higher than the average of companies in the S&P 500 Index.

The model upgraded commercial bank Wilber(GIW) to "buy."

The numbers: Second-quarter net income grew 13% to $14 million, or 15 cents, as revenue increased 11% to $14 million. The operating margin jumped from 23% to 30% and the net margin remained steady at 11%. The company is adequately capitalized, with $16 million of cash reserves. But a debt-to-equity ratio of 1.1 indicates a larger-than-ideal debt load.

The stock: Wilber has gained 53% this year, beating major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 21 and offers a mediocre 2.2% dividend yield.

The model upgraded Realty Income(O), a real estate investment trust that specializes in retail properties, to "buy."

The numbers: Second-quarter earnings declined marginally to $33 million, or 23 cents, as revenue dipped below $82 million. The operating margin fell to 64% and the net margin dropped to 40%. A debt-to-equity ratio of 0.9 demonstrates reasonable leverage. We give the REIT a financial strength score of 7 out of 10, which is on par with our "buy"-rated average.