Financial Comparison: Enel Americas (ENIA) vs. El Paso Electric (EE)

Enel Americas (NYSE: ENIA) and El Paso Electric (NYSE:EE) are both mid-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Enel Americas and El Paso Electric, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Americas 0 0 2 0 3.00
El Paso Electric 1 2 0 0 1.67

El Paso Electric has a consensus price target of $57.67, suggesting a potential upside of 12.96%. Given El Paso Electric’s higher possible upside, analysts clearly believe El Paso Electric is more favorable than Enel Americas.

Volatility and Risk

Enel Americas has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, El Paso Electric has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enel Americas and El Paso Electric’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Americas $7.76 billion 1.67 $497.97 million N/A N/A
El Paso Electric $886.94 million 2.34 $96.76 million $2.40 21.27

Enel Americas has higher revenue and earnings than El Paso Electric.

Dividends

Enel Americas pays an annual dividend of $0.21 per share and has a dividend yield of 1.9%. El Paso Electric pays an annual dividend of $1.34 per share and has a dividend yield of 2.6%. El Paso Electric pays out 55.8% of its earnings in the form of a dividend. Enel Americas has increased its dividend for 6 consecutive years.

Profitability

This table compares Enel Americas and El Paso Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Americas N/A N/A N/A
El Paso Electric 10.13% 8.44% 2.67%

Institutional and Insider Ownership

8.4% of Enel Americas shares are owned by institutional investors. Comparatively, 98.7% of El Paso Electric shares are owned by institutional investors. 0.0% of Enel Americas shares are owned by company insiders. Comparatively, 1.3% of El Paso Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

El Paso Electric beats Enel Americas on 8 of the 15 factors compared between the two stocks.

Enel 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.

El Paso Electric Company Profile

El Paso Electric Company is a public utility company. As of December 31, 2016, the Company was engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. As of December 31, 2016, the Company owned or had ownership interests in several electrical generating facilities providing it with a generating capability of approximately 2,080 megawatts (MW). The Company’s energy sources consists of nuclear fuel, natural gas, coal, purchased power and generated by Company-owned solar photovoltaic panels. As of December 31, 2016, the Company had power purchase agreements for 107 MW from solar photovoltaic generation facilities. As of December 31, 2016, the Company served approximately 411,100 residential, commercial, industrial, public authority and wholesale customers. The Company distributes electricity to retail customers principally in El Paso, Texas and Las Cruces, New Mexico.

Receive News & Ratings for Enel Americas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enel Americas and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply