BOSTON ( TheStreet) -- Utility stocks offer large dividends, but weak revenue growth. Here are five positioned to outgrow peers in 2010. They rank atop the industry, according to the TheStreet's quantitative model, which evaluates equity fundamentals and performance.
5. DPL (DPL) sells electricity in Ohio.
The numbers: Fourth-quarter profit decreased 30% to $50 million, or 43 cents a share, as revenue ascended 3.4% to $405 million. DPL's operating margin narrowed from 28% to 25%. It holds $75 million of cash and $1.3 billion of debt. Its return on equity, a measure of profitability, beats the industry average.
The stock: DPL has advanced 35% in the past year, trailing U.S. benchmarks. It trades at a price-to-projected-earnings ratio of 11, a discount to its peer group average. Its PEG ratio, a measure of value relative to growth, is low at 1.5. A PEG ratio below 1 implies cheap shares. It offers a 4.4% dividend yield.
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