AES vs. AGR, VIV, LNT, NI, EVRG, NRG, EBR, ATO, WTRG, and SBS
Should you be buying AES stock or one of its competitors? The main competitors of AES include Avangrid (AGR), Telefônica Brasil (VIV), Alliant Energy (LNT), NiSource (NI), Evergy (EVRG), NRG Energy (NRG), Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR), Atmos Energy (ATO), Essential Utilities (WTRG), and Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS). These companies are all part of the "utilities" sector.
AES (NYSE:AES) and Avangrid (NYSE:AGR) are both large-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, media sentiment, community ranking, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
93.1% of AES shares are owned by institutional investors. Comparatively, 13.1% of Avangrid shares are owned by institutional investors. 0.6% of AES shares are owned by insiders. Comparatively, 0.1% of Avangrid shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
AES pays an annual dividend of $0.69 per share and has a dividend yield of 3.2%. Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 4.9%. AES pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid is clearly the better dividend stock, given its higher yield and lower payout ratio.
Avangrid has lower revenue, but higher earnings than AES. Avangrid is trading at a lower price-to-earnings ratio than AES, indicating that it is currently the more affordable of the two stocks.
AES presently has a consensus price target of $22.50, indicating a potential upside of 5.73%. Avangrid has a consensus price target of $34.75, indicating a potential downside of 3.04%. Given AES's stronger consensus rating and higher possible upside, equities research analysts plainly believe AES is more favorable than Avangrid.
In the previous week, AES had 11 more articles in the media than Avangrid. MarketBeat recorded 22 mentions for AES and 11 mentions for Avangrid. Avangrid's average media sentiment score of 0.85 beat AES's score of 0.43 indicating that Avangrid is being referred to more favorably in the news media.
AES received 119 more outperform votes than Avangrid when rated by MarketBeat users. Likewise, 61.90% of users gave AES an outperform vote while only 55.07% of users gave Avangrid an outperform vote.
Avangrid has a net margin of 10.80% compared to AES's net margin of 4.40%. AES's return on equity of 36.23% beat Avangrid's return on equity.
AES has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Summary
AES beats Avangrid on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AES and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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