Endesa (OTCMKTS:ELEZF – Get Rating) and COMPANHIA ENERG/S (NYSE:CIG.C – Get Rating) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations for Endesa and COMPANHIA ENERG/S, as reported by MarketBeat.com.
Get Endesa alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endesa | 0 | 0 | 1 | 0 | 3.00 |
| COMPANHIA ENERG/S | 0 | 0 | 0 | 0 | N/A |
Endesa currently has a consensus price target of $21.80, suggesting a potential upside of 15.34%. Given Endesa's higher possible upside, equities analysts clearly believe Endesa is more favorable than COMPANHIA ENERG/S.
Earnings and Valuation
This table compares Endesa and COMPANHIA ENERG/S's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endesa | N/A | N/A | N/A | $1.46 | 12.95 |
| COMPANHIA ENERG/S | $34.37 billion | N/A | N/A | $3.12 | 0.94 |
COMPANHIA ENERG/S is trading at a lower price-to-earnings ratio than Endesa, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Endesa and COMPANHIA ENERG/S's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endesa | N/A | N/A | N/A |
| COMPANHIA ENERG/S | N/A | N/A | N/A |
Institutional and Insider Ownership
7.1% of Endesa shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Endesa pays an annual dividend of $1.19 per share and has a dividend yield of 6.3%. COMPANHIA ENERG/S pays an annual dividend of $0.12 per share and has a dividend yield of 4.2%. Endesa pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COMPANHIA ENERG/S pays out 3.9% of its earnings in the form of a dividend.
Summary
Endesa beats COMPANHIA ENERG/S on 5 of the 8 factors compared between the two stocks.
About Endesa
(Get Rating)
Endesa SA engages in the generation, distribution, and sale of electricity. It is also involved in the natural gas sector and provides other energy-related services. It operates through the following segments: Generation & Supply, Distribution, and Structure. The Generation & Supply segment refers to the production of electricity from energy sources such as hydroelectric, nuclear, thermal, wind, and solar. The Distribution segment consists of distribution of electricity to consumption points. The Structure segment includes the balances and transactions of holding and financing companies. The company was founded on November 18, 1944 and is headquartered in Madrid, Spain.
About COMPANHIA ENERG/S
(Get Rating)
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. As of December 31, 2017, the company operated 117 hydroelectric, thermoelectric, and wind plants with an installed capacity of 5.7 GW; 38 substations and 4,927 km of transmission lines; and 529,873 km of distribution networks and 17,301 km of distribution lines. It is also involved in the natural gas distribution; sale and trading of electricity; energy and technological solutions businesses; provision of telecommunications and data center service activities; and operation of solar energy plants. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.
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