Enel Americas (NYSE: ENIA) and AES (NYSE:AES) are both mid-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Enel Americas and AES’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Americas $7.76 billion 1.67 $497.97 million N/A N/A
AES $13.59 billion 0.53 -$1.13 billion ($0.03) -362.33

Enel Americas has higher earnings, but lower revenue than AES.

Dividends

Enel Americas pays an annual dividend of $0.21 per share and has a dividend yield of 1.9%. AES pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. AES pays out -1,600.0% of its earnings in the form of a dividend. Enel Americas has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

8.4% of Enel Americas shares are owned by institutional investors. Comparatively, 93.1% of AES shares are owned by institutional investors. 0.0% of Enel Americas shares are owned by insiders. Comparatively, 1.1% of AES shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Enel Americas and AES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Americas N/A N/A N/A
AES -5.43% 15.14% 2.47%

Volatility & Risk

Enel Americas has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, AES has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Enel Americas and AES, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Americas 0 0 2 0 3.00
AES 0 3 2 0 2.40

AES has a consensus price target of $12.88, suggesting a potential upside of 18.45%. Given AES’s higher probable upside, analysts plainly believe AES is more favorable than Enel Americas.

Summary

AES beats Enel Americas on 9 of the 14 factors compared between the two stocks.

About Enel Americas

Enel Americas S.A., formerly Enersis Americas S.A., through its subsidiaries and jointly controlled entities, is engaged in the electricity generation, transmission and distribution businesses in Chile, Brazil, Colombia, Peru and Argentina. The Company operates through two segments: Generation and Transmission, and Distribution. The Company’s Generation and Transmission segment operates through companies, including Central Comercializadora de Energia S.A. (Cemsa); Central Dock Sud S.A. (Dock Sud); Central Costanera S.A. (Costanera), and Hidroelectrica El Chocon S.A. (El Chocon). The Company’s Distribution segment operates through companies, including Empresa Distribuidora Sur S.A. (Edesur); Ampla Energia e Servicos S.A. (Ampla), and Companhia Energetica do Ceara S.A. (Coelce). The Company is engaged in non-electricity business through its subsidiary, Servicios Informaticos e Inmobiliarios Ltda. (SIEI). It holds interest in Yacylec S.A., which is an electricity transmission company.

About AES

The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. It is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and the Caribbean (MCAC); Europe, and Asia. As of December 31, 2016, its United States SBU had 18 generation facilities and two integrated utilities in the United States. As of December 31, 2016, its Andes SBU had generation facilities in three countries. Its Brazil SBU has generation and distribution businesses, Eletropaulo and Tiete. As of December 31, 2016, its MCAC SBU had a portfolio of distribution businesses and generation facilities, including renewable energy, in five countries. As of December 31, 2016, its Europe SBU had generation facilities in five countries. As of December 31, 2016, its Asia SBU had generation facilities in three countries.

Receive News & Ratings for Enel Americas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enel Americas and related companies with MarketBeat.com's FREE daily email newsletter.