Analyzing Entergy Corporation (ETR) and Empresa Nacional de Electricidad (EOCC)
Entergy Corporation (NYSE: ETR) and Empresa Nacional de Electricidad (NYSE:EOCC) are both mid-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Risk and Volatility
Entergy Corporation has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Empresa Nacional de Electricidad has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Institutional & Insider Ownership
84.2% of Entergy Corporation shares are held by institutional investors. Comparatively, 2.7% of Empresa Nacional de Electricidad shares are held by institutional investors. 0.2% of Entergy Corporation shares are held by company insiders. 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.
Earnings & Valuation
This table compares Entergy Corporation and Empresa Nacional de Electricidad’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Entergy Corporation||$10.98 billion||1.25||$3.56 billion||($4.99)||-15.38|
|Empresa Nacional de Electricidad||$2.48 billion||2.80||$871.63 million||N/A||N/A|
Entergy Corporation has higher revenue and earnings than Empresa Nacional de Electricidad.
This is a summary of current ratings and recommmendations for Entergy Corporation and Empresa Nacional de Electricidad, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Empresa Nacional de Electricidad||0||1||0||0||2.00|
Entergy Corporation presently has a consensus target price of $77.55, suggesting a potential upside of 1.04%. Empresa Nacional de Electricidad has a consensus target price of $24.20, suggesting a potential downside of 4.87%. Given Entergy Corporation’s higher possible upside, equities research analysts plainly believe Entergy Corporation is more favorable than Empresa Nacional de Electricidad.
This table compares Entergy Corporation and Empresa Nacional de Electricidad’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Empresa Nacional de Electricidad||N/A||N/A||N/A|
Entergy Corporation pays an annual dividend of $3.48 per share and has a dividend yield of 4.5%. Empresa Nacional de Electricidad pays an annual dividend of $1.14 per share and has a dividend yield of 4.5%. Entergy Corporation pays out -69.7% of its earnings in the form of a dividend. Entergy Corporation has increased its dividend for 2 consecutive years. Entergy Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Entergy Corporation beats Empresa Nacional de Electricidad on 11 of the 15 factors compared between the two stocks.
About Entergy Corporation
Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.
About Empresa Nacional de Electricidad
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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