Financial Survey: Pinnacle West Capital (PNW) versus Enersis Americas (ENIA)

Enersis Americas (NYSE: ENIA) and Pinnacle West Capital (NYSE:PNW) are both mid-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Valuation & Earnings



This table compares Enersis Americas and Pinnacle West Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enersis Americas $8.85 billion 1.37 $2.60 billion N/A N/A
Pinnacle West Capital $3.53 billion 2.79 $1.53 billion $4.52 19.50

Enersis Americas has higher revenue and earnings than Pinnacle West Capital.

Insider & Institutional Ownership

9.0% of Enersis Americas shares are owned by institutional investors. Comparatively, 84.4% of Pinnacle West Capital shares are owned by institutional investors. 0.0% of Enersis Americas shares are owned by company insiders. Comparatively, 0.7% of Pinnacle West Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Enersis Americas and Pinnacle West Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enersis Americas N/A N/A N/A
Pinnacle West Capital 18.24% 13.86% 4.21%

Dividends

Enersis Americas pays an annual dividend of $0.21 per share and has a dividend yield of 2.0%. Pinnacle West Capital pays an annual dividend of $2.62 per share and has a dividend yield of 3.0%. Pinnacle West Capital pays out 58.0% of its earnings in the form of a dividend. Enersis Americas has raised its dividend for 5 consecutive years.

Risk & Volatility

Enersis Americas has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Enersis Americas and Pinnacle West Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enersis Americas 0 1 0 0 2.00
Pinnacle West Capital 1 9 0 0 1.90

Pinnacle West Capital has a consensus price target of $84.56, indicating a potential downside of 4.07%. Given Pinnacle West Capital’s higher probable upside, analysts plainly believe Pinnacle West Capital is more favorable than Enersis Americas.

Summary

Pinnacle West Capital beats Enersis Americas on 8 of the 14 factors compared between the two stocks.

Enersis Americas Company Profile

Enel Americas S.A., formerly Enersis Americas S.A., through its subsidiaries and jointly controlled entities, is engaged in the electricity generation, transmission and distribution businesses in Chile, Brazil, Colombia, Peru and Argentina. The Company operates through two segments: Generation and Transmission, and Distribution. The Company’s Generation and Transmission segment operates through companies, including Central Comercializadora de Energia S.A. (Cemsa); Central Dock Sud S.A. (Dock Sud); Central Costanera S.A. (Costanera), and Hidroelectrica El Chocon S.A. (El Chocon). The Company’s Distribution segment operates through companies, including Empresa Distribuidora Sur S.A. (Edesur); Ampla Energia e Servicos S.A. (Ampla), and Companhia Energetica do Ceara S.A. (Coelce). The Company is engaged in non-electricity business through its subsidiary, Servicios Informaticos e Inmobiliarios Ltda. (SIEI). It holds interest in Yacylec S.A., which is an electricity transmission company.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

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