Avangrid (NYSE:AGR) and Enel Chile (NYSE:ENIC) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares Avangrid and Enel Chile's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Avangrid | $6.34 billion | 2.52 | $700 million | $2.17 | 23.77 |
Enel Chile | $3.45 billion | 1.58 | $414.61 million | N/A | N/A |
Avangrid has higher revenue and earnings than Enel Chile.
Dividends
Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. Enel Chile pays an annual dividend of $0.19 per share and has a dividend yield of 4.8%. Avangrid pays out 81.1% 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 has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Avangrid and Enel Chile, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Avangrid | 1 | 2 | 2 | 0 | 2.20 |
Enel Chile | 0 | 0 | 0 | 0 | N/A |
Avangrid currently has a consensus price target of $54.25, suggesting a potential upside of 5.16%. Given Avangrid's higher probable upside, analysts clearly believe Avangrid is more favorable than Enel Chile.
Profitability
This table compares Avangrid and Enel Chile's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Avangrid | 10.19% | 4.20% | 1.90% |
Enel Chile | -4.61% | 29.88% | 14.25% |
Institutional & Insider Ownership
13.7% of Avangrid shares are held by institutional investors. Comparatively, 2.6% of Enel Chile shares are held by institutional investors. 0.1% of Avangrid shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Avangrid has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Summary
Avangrid beats Enel Chile on 10 of the 15 factors compared between the two stocks.