Electricite de France (OTCMKTS:ECIFF) and AES (NYSE:AES) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Dividends

AES pays an annual dividend of $0.55 per share and has a dividend yield of 3.0%. Electricite de France does not pay a dividend. AES pays out 44.4% of its earnings in the form of a dividend. AES has raised its dividend for 6 consecutive years.

Profitability

This table compares Electricite de France and AES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electricite de France N/A N/A N/A
AES 11.20% 19.43% 3.36%

Institutional & Insider Ownership

93.6% of AES shares are held by institutional investors. 1.1% of AES shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Electricite de France and AES, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electricite de France 0 0 0 0 N/A
AES 1 3 1 0 2.00

AES has a consensus price target of $13.25, suggesting a potential downside of 27.64%. Given AES’s higher probable upside, analysts plainly believe AES is more favorable than Electricite de France.

Valuation & Earnings

This table compares Electricite de France and AES’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electricite de France N/A N/A N/A N/A N/A
AES $10.74 billion 1.13 $1.20 billion $1.24 14.77

AES has higher revenue and earnings than Electricite de France.

Summary

AES beats Electricite de France on 10 of the 11 factors compared between the two stocks.

Electricite de France Company Profile

Electricité de France S.A., an integrated energy company, engages in the generation, transmission, distribution, supply, and trading of power and energy services in France, the United Kingdom, Italy, and internationally. It generates electricity through nuclear, fossil fuel, hydro, solar, wind, biomass, biogas, tidal, geothermal, and cogeneration plants. The company also manages low and medium-voltage public electricity distribution networks; operates, maintains, and develops high-voltage and very-high-voltage electricity transmission networks; and services and produces equipment and fuel for nuclear reactors. In addition, it is involved in commodity trading activities; and the provision of energy services, including district heating services, thermal energy services, etc. The company serves 37.6 million customers. It serves small businesses, local authorities, and industrial and residential customers. Electricité de France S.A. was founded in 1946 and is headquartered in Paris, France.

AES Company Profile

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses a range of fuels to generate electricity, including natural gas, coal, pet coke, diesel, and oil, as well as renewables, such as hydro, solar, wind, energy storage, biomass, and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,905 megawatts. It has operations in the United States, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia.

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