Head to Head Contrast: Enel Generacion Chile (EOCC) versus Pampa Energia (PAM)

Pampa Energia (NYSE: PAM) and Enel Generacion Chile (NYSE:EOCC) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Pampa Energia has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Enel Generacion Chile has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Dividends

Enel Generacion Chile pays an annual dividend of $1.14 per share and has a dividend yield of 4.1%. Pampa Energia does not pay a dividend.

Earnings and Valuation

This table compares Pampa Energia and Enel Generacion Chile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pampa Energia $2.13 billion 2.44 -$740,000.00 $3.32 21.23
Enel Generacion Chile $2.46 billion 3.08 $614.32 million N/A N/A

Enel Generacion Chile has higher revenue and earnings than Pampa Energia.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pampa Energia and Enel Generacion Chile, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pampa Energia 0 1 2 0 2.67
Enel Generacion Chile 2 0 0 0 1.00

Pampa Energia presently has a consensus target price of $72.00, suggesting a potential upside of 2.14%. Enel Generacion Chile has a consensus target price of $24.20, suggesting a potential downside of 12.67%. Given Pampa Energia’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pampa Energia is more favorable than Enel Generacion Chile.

Insider & Institutional Ownership

44.2% of Pampa Energia shares are owned by institutional investors. Comparatively, 2.3% of Enel Generacion Chile shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Pampa Energia and Enel Generacion Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pampa Energia 6.65% 24.73% 4.64%
Enel Generacion Chile N/A N/A N/A

Summary

Pampa Energia beats Enel Generacion Chile on 8 of the 12 factors compared between the two stocks.

About Pampa Energia

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

About Enel Generacion Chile

Enel Generacion Chile SA, formerly Empresa Nacional De Electricidad SA, is a Chile-based company engaged in the business of electricity generation. The Company operates in Chile. The Company owns and operates a total of approximately 111-generation units in Chile both directly and through its subsidiaries, Pehuenche, Celta and GasAtacama. Of these generation units, approximately 38 are hydroelectric, with a total installed capacity of over 3,470 megawatts. There are approximately 22 thermal generation units that operate with gas, coal or oil with a total installed capacity of over 2,808 megawatts. There are over 51 wind powered generation units with an aggregate installed capacity of approximately 78 megawatts. The Company’s subsidiaries include Compania Electrica San Isidro S.A. (San Isidro), Compania Electrica Tarapaca S.A. (Celta), Empresa Electrica Pehuenche S.A. (Pehuenche) and GasAtacama S.A (GasAtacama). It is controlled by Enel Chile SA.

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