ENGIE BRASIL EN/S (EGIEY) versus CPFL Energia (CPL) Financial Survey

CPFL Energia (NYSE:CPL) and ENGIE BRASIL EN/S (OTCMKTS:EGIEY) are both mid-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares CPFL Energia and ENGIE BRASIL EN/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CPFL Energia 7.31% 17.28% 4.94%
ENGIE BRASIL EN/S 26.75% 32.19% 11.17%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CPFL Energia and ENGIE BRASIL EN/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CPFL Energia 1 0 0 0 1.00
ENGIE BRASIL EN/S 0 1 0 0 2.00

Valuation and Earnings

This table compares CPFL Energia and ENGIE BRASIL EN/S’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CPFL Energia $7.70 billion 0.95 $563.08 million N/A N/A
ENGIE BRASIL EN/S $2.20 billion 4.09 $627.46 million N/A N/A

ENGIE BRASIL EN/S has lower revenue, but higher earnings than CPFL Energia.

Dividends

CPFL Energia pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. ENGIE BRASIL EN/S pays an annual dividend of $0.74 per share and has a dividend yield of 6.7%. CPFL Energia has raised its dividend for 5 consecutive years.

Volatility and Risk

CPFL Energia has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, ENGIE BRASIL EN/S has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Insider & Institutional Ownership

0.4% of CPFL Energia shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ENGIE BRASIL EN/S beats CPFL Energia on 8 of the 12 factors compared between the two stocks.

CPFL Energia Company Profile

CPFL Energia S.A., together with its subsidiaries, generates, transmits, distributes, and commercializes electricity to residential, industrial, and commercial customers in Brazil. The company generates electricity through wind, biomass-powered thermal, solar, and hydroelectric power plants. It also manufactures, commercializes, rents, and maintains electro-mechanical equipment; and offers administrative, call center, collection, IT, telecommunication, energy transmission, and energy efficiency management services, as well as maintenance services for energy generation companies. As of December 31, 2017, the company distributed electricity to approximately 9.4 million customers; and had 318,018 kilometers of distribution lines, which included 457,741 distribution transformers. It also has an installed capacity of 3,284 megawatts. CPFL Energia S.A. was founded in 1998 and is headquartered in Campinas, Brazil. CPFL Energia S.A. is a subsidiary of State Grid Brazil Power Participações Ltda.

ENGIE BRASIL EN/S Company Profile

Engie Brasil Energia S.A., together with its subsidiaries, generates and sells electrical energy in Brazil. It operates 31 plants, including 11 hydroelectric power plants; 7 thermal power plants, which comprise 3 coal, 3 biomass, and 1 natural gas power plants; 9 wind farms; 2 photovoltaic solar power plants; and 2 small hydroelectric plants in the states of Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Minas Gerais, Mato Grosso do Sul, Mato Grosso, Goiás, Tocantins, Maranhão, Piauí, and Ceará. As of February 23, 2018, the company had an installed capacity of 10,898.8 megawatts. It also engages in buying and selling conventional and incentivized energy. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. is a subsidiary of ENGIE Brasil Participações Ltda.

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