El Paso Electric (NYSE:EE) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional and Insider Ownership
95.1% of El Paso Electric shares are owned by institutional investors. Comparatively, 4.7% of Enel Chile shares are owned by institutional investors. 1.2% of El Paso Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
El Paso Electric pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Enel Chile pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. El Paso Electric pays out 61.8% of its earnings in the form of a dividend. El Paso Electric has raised its dividend for 7 consecutive years and Enel Chile has raised its dividend for 2 consecutive years. El Paso Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares El Paso Electric and Enel Chile’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|El Paso Electric||$903.60 million||2.77||$84.32 million||$2.33||26.34|
|Enel Chile||$3.93 billion||1.23||$578.74 million||N/A||N/A|
Enel Chile has higher revenue and earnings than El Paso Electric.
Volatility & Risk
El Paso Electric has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for El Paso Electric and Enel Chile, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Paso Electric||0||3||0||0||2.00|
El Paso Electric currently has a consensus price target of $55.33, suggesting a potential downside of 9.84%. Given El Paso Electric’s higher possible upside, analysts clearly believe El Paso Electric is more favorable than Enel Chile.
This table compares El Paso Electric and Enel Chile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Paso Electric||9.33%||8.83%||2.84%|
El Paso Electric beats Enel Chile on 9 of the 14 factors compared between the two stocks.
El Paso Electric Company Profile
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,085 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 425,000 residential, commercial, industrial, public authority, and wholesale customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
Enel Chile Company Profile
Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company also provides consulting, management, administration, and contract operation services related to information systems, technological information, telecommunications, and control systems in South America; and develops real estate projects in Chile. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is based in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.
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