Analyzing Light (LGSXY) and Its Competitors

Profitability

This table compares Light and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Light	N/A	N/A	N/A
Light Competitors	-42.52%	13.39%	0.72%

Valuation & Earnings

This table compares Light and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Light	N/A	N/A	0.90
Light Competitors	$6.25 billion	$816.56 million	19.68

Light’s peers have higher revenue and earnings than Light. Light is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Light pays an annual dividend of $1.41 per share and has a dividend yield of 117.9%. Light pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 275.9% of their earnings in the form of a dividend. Light is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

0.0% of Light shares are owned by institutional investors. Comparatively, 35.2% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by 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.

Summary

Light peers beat Light on 6 of the 9 factors compared.

About Light

Light S.A., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electric power in Brazil. The company distributes electricity in the state of Rio de Janeiro. It also engages in the research, planning, building, operation, and exploration of generation and transmission systems; purchase, sale, import, and export of electric and thermal power, and gas and industrial utilities; provision of consulting services in the energy sector; lease of real estate and personal properties; acquisition and sale of goods related to the studies and projects; implementation, operation, and maintenance of construction works and facilities; and trading activities. In addition, it provides services to low voltage clients, including the assembly, renovation, and maintenance of facilities. The company primarily serves residential, commercial, and industrial customers. Light S.A. was founded in 1899 and is based in Rio de Janeiro, Brazil.