Azure Power Global (NYSE:AZRE) and Enel Americas (NYSE:ENIA) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility and Risk

Azure Power Global has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500. Comparatively, Enel Americas has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Dividends

Enel Americas pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Azure Power Global does not pay a dividend. Enel Americas pays out 22.6% of its earnings in the form of a dividend. Enel Americas has raised its dividend for 2 consecutive years.

Profitability

This table compares Azure Power Global and Enel Americas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Azure Power Global 0.24% 0.81% 0.15%
Enel Americas 8.15% 22.83% 9.37%

Valuation and Earnings

This table compares Azure Power Global and Enel Americas’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Azure Power Global $118.27 million 3.98 -$12.60 million ($0.65) -17.72
Enel Americas $13.18 billion 0.80 $1.20 billion $0.62 14.73

Enel Americas has higher revenue and earnings than Azure Power Global. Azure Power Global is trading at a lower price-to-earnings ratio than Enel Americas, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

51.8% of Azure Power Global shares are owned by institutional investors. Comparatively, 7.4% of Enel Americas shares are owned by institutional investors. 0.0% of Enel Americas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Azure Power Global and Enel Americas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Azure Power Global 0 1 4 0 2.80
Enel Americas 0 1 2 0 2.67

Azure Power Global presently has a consensus target price of $22.00, suggesting a potential upside of 90.97%. Given Azure Power Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Azure Power Global is more favorable than Enel Americas.

Summary

Enel Americas beats Azure Power Global on 10 of the 17 factors compared between the two stocks.

Azure Power Global Company Profile

Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.

Enel Americas Company Profile

Enel Américas S.A. operates as an electricity utility company in Argentina, Brazil, Colombia, and Peru. The company, through its subsidiaries, generates, transmits, and distributes electricity using hydroelectric and thermal energy sources. As of December 31, 2017, it had 11,444 megawatts of installed generation capacity and 17.2 million distribution customers. The company was formerly known as Enersis Américas S.A. and changed its name to Enel Américas S.A. in December 2016. Enel Américas S.A. was founded in 1889 and is headquartered in Santiago, Chile. Enel Américas S.A. is a subsidiary of Enel S.p.A.

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