Analyzing EDP – Energias de Portugal (ELCPF) & Its Peers

EDP – Energias de Portugal (OTCMKTS:ELCPF) is one of 52 publicly-traded companies in the “Multi – Utilities” industry, but how does it compare to its rivals? We will compare EDP – Energias de Portugal to related businesses based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

31.6% of EDP – Energias de Portugal shares are owned by institutional investors. Comparatively, 60.1% of shares of all “Multi – Utilities” companies are owned by institutional investors. 10.0% of shares of all “Multi – Utilities” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares EDP – Energias de Portugal and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
EDP – Energias de Portugal	N/A	N/A	18.08
EDP – Energias de Portugal Competitors	$16.27 billion	$269.64 million	27.95

EDP – Energias de Portugal’s rivals have higher revenue and earnings than EDP – Energias de Portugal. EDP – Energias de Portugal is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for EDP – Energias de Portugal and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EDP – Energias de Portugal	0	1	2	0	2.67
EDP – Energias de Portugal Competitors	1034	4021	4333	79	2.37

As a group, “Multi – Utilities” companies have a potential upside of 32.30%. Given EDP – Energias de Portugal’s rivals higher possible upside, analysts clearly believe EDP – Energias de Portugal has less favorable growth aspects than its rivals.

Profitability

This table compares EDP – Energias de Portugal and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EDP – Energias de Portugal	N/A	N/A	N/A
EDP – Energias de Portugal Competitors	8.97%	14.73%	4.07%

Dividends

EDP – Energias de Portugal pays an annual dividend of $0.13 per share and has a dividend yield of 2.7%. EDP – Energias de Portugal pays out 48.4% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.5% and pay out 65.0% of their earnings in the form of a dividend.

Summary

EDP – Energias de Portugal rivals beat EDP – Energias de Portugal on 10 of the 13 factors compared.

About EDP – Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.