AES vs. VIV, AGR, LNT, NI, EBR, EVRG, NRG, ATO, CMS, and WTRG
Should you be buying AES stock or one of its competitors? The main competitors of AES include Telefônica Brasil (VIV), Avangrid (AGR), Alliant Energy (LNT), NiSource (NI), Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR), Evergy (EVRG), NRG Energy (NRG), Atmos Energy (ATO), CMS Energy (CMS), and Essential Utilities (WTRG). These companies are all part of the "utilities" sector.
Telefônica Brasil (NYSE:VIV) and AES (NYSE:AES) are both large-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, community ranking, risk, earnings, institutional ownership, media sentiment, profitability, valuation and analyst recommendations.
5.2% of Telefônica Brasil shares are owned by institutional investors. Comparatively, 93.1% of AES shares are owned by institutional investors. 0.6% of AES shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Telefônica Brasil pays an annual dividend of $0.30 per share and has a dividend yield of 3.4%. AES pays an annual dividend of $0.69 per share and has a dividend yield of 3.4%. Telefônica Brasil pays out 47.6% of its earnings in the form of a dividend. 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. AES has raised its dividend for 11 consecutive years. AES is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Telefônica Brasil currently has a consensus target price of $11.35, indicating a potential upside of 26.82%. AES has a consensus target price of $22.50, indicating a potential upside of 9.76%. Given AES's higher possible upside, equities research analysts plainly believe Telefônica Brasil is more favorable than AES.
Telefônica Brasil has higher earnings, but lower revenue than AES. Telefônica Brasil is trading at a lower price-to-earnings ratio than AES, indicating that it is currently the more affordable of the two stocks.
Telefônica Brasil has a net margin of 9.63% compared to Telefônica Brasil's net margin of 4.40%. Telefônica Brasil's return on equity of 36.23% beat AES's return on equity.
AES received 31 more outperform votes than Telefônica Brasil when rated by MarketBeat users. Likewise, 61.60% of users gave AES an outperform vote while only 59.90% of users gave Telefônica Brasil an outperform vote.
Telefônica Brasil has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, AES has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
In the previous week, AES had 27 more articles in the media than Telefônica Brasil. MarketBeat recorded 29 mentions for AES and 2 mentions for Telefônica Brasil. AES's average media sentiment score of 1.80 beat Telefônica Brasil's score of 0.45 indicating that Telefônica Brasil is being referred to more favorably in the media.
Summary
AES beats Telefônica Brasil on 14 of the 21 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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