Head to Head Review: Enel Chile (ENIC) & Cleco Corporate (CNL)

Cleco Corporate (NYSE: CNL) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Cleco Corporate pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Enel Chile pays an annual dividend of $0.16 per share and has a dividend yield of 2.7%. Cleco Corporate pays out 72.7% of its earnings in the form of a dividend. Cleco Corporate has raised its dividend for 8 consecutive years. Cleco Corporate is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cleco Corporate and Enel Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cleco Corporate 13.38% 8.95% 2.84%
Enel Chile N/A N/A N/A

Valuation & Earnings

This table compares Cleco Corporate and Enel Chile’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cleco Corporate N/A N/A N/A $2.20 25.17
Enel Chile $3.30 billion 1.79 $499.40 million N/A N/A

Enel Chile has higher revenue and earnings than Cleco Corporate.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cleco Corporate and Enel Chile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cleco Corporate 0 0 0 0 N/A
Enel Chile 2 0 0 0 1.00

Volatility & Risk

Cleco Corporate has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of -0.86, meaning that its share price is 186% less volatile than the S&P 500.

Institutional and Insider Ownership

6.4% of Enel Chile shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cleco Corporate beats Enel Chile on 6 of the 9 factors compared between the two stocks.

Cleco Corporate Company Profile

Cleco Corporate Holdings LLC, formerly Cleco Corporation, is a public utility holding company. The Company’s segments include Cleco Power and Other. Cleco Power is a regulated electric utility company that owns over 10 generating units with a total nameplate capacity of approximately 3,330 megawatts (MW) and serves approximately 287,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. The Company, through its subsidiaries, owns one transmission substation in Louisiana and one transmission substation in Mississippi. Cleco Power is engaged in the generation, transmission, distribution and sale of electricity within Louisiana. It owns natural gas pipelines and interconnections at all of its generating facilities, which allow it to access various natural gas supply markets and maintain an economical fuel supply for its customers. The Company holds investments in its subsidiary, Cleco Power LLC (Cleco Power).

Enel Chile Company Profile

Enel Chile SA is a Chile-based electricity utility company. The Company, through its combined entities and affiliates, is engaged in the generation, transmission and distribution of electricity businesses. The Company’s segments include Generation, Distribution, and Other businesses and intercompany transaction adjustments. It owns and operates electricity generation units in Chile through its subsidiaries, Empresa Nacional de Electricidad SA, Empresa Electrica Pehuenche SA, Compania Electrica Tarapaca SA and GasAtacama SA. The Company’s electricity distribution business is conducted through Chilectra Chile SA, an electricity distribution company. The Company’s combined entity, Servicios Informaticos e Inmobiliarios Ltda, is a business consultancy that provides consulting, management, administration and contract operations related to information systems, technological information, telecommunications and control systems in South America.

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