American Electric Power (NASDAQ:AEP) and Pampa Energía (NYSE:PAM) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Profitability
This table compares American Electric Power and Pampa Energía's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
American Electric Power | 12.82% | 10.19% | 2.66% |
Pampa Energía | 4.47% | 4.40% | 1.88% |
Volatility & Risk
American Electric Power has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Pampa Energía has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
75.0% of American Electric Power shares are owned by institutional investors. Comparatively, 15.6% of Pampa Energía shares are owned by institutional investors. 0.2% of American Electric Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for American Electric Power and Pampa Energía, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
American Electric Power | 1 | 2 | 9 | 0 | 2.67 |
Pampa Energía | 2 | 0 | 1 | 0 | 1.67 |
American Electric Power currently has a consensus price target of $93.1818, suggesting a potential upside of 3.37%. Pampa Energía has a consensus price target of $11.40, suggesting a potential downside of 20.28%. Given American Electric Power's stronger consensus rating and higher possible upside, equities analysts clearly believe American Electric Power is more favorable than Pampa Energía.
Earnings and Valuation
This table compares American Electric Power and Pampa Energía's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
American Electric Power | $15.56 billion | 2.88 | $1.92 billion | $4.24 | 21.26 |
Pampa Energía | $2.84 billion | 0.29 | $692 million | $9.50 | 1.51 |
American Electric Power has higher revenue and earnings than Pampa Energía. Pampa Energía is trading at a lower price-to-earnings ratio than American Electric Power, indicating that it is currently the more affordable of the two stocks.
Summary
American Electric Power beats Pampa Energía on 12 of the 14 factors compared between the two stocks.