Comparing Enersis Chile (ENIC) and Pinnacle West Capital Corporation (PNW)

Enersis Chile (NYSE: ENIC) and Pinnacle West Capital Corporation (NYSE:PNW) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Enersis Chile and Pinnacle West Capital Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enersis Chile 2 0 0 0 1.00
Pinnacle West Capital Corporation 1 9 0 0 1.90

Pinnacle West Capital Corporation has a consensus target price of $85.00, suggesting a potential downside of 4.87%. Given Pinnacle West Capital Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Pinnacle West Capital Corporation is more favorable than Enersis Chile.

Valuation and Earnings

This table compares Enersis Chile and Pinnacle West Capital Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Enersis Chile $3.30 billion 1.63 $499.40 million N/A N/A
Pinnacle West Capital Corporation $3.50 billion 2.85 $442.03 million $4.63 19.30

Enersis Chile has higher revenue, but lower earnings than Pinnacle West Capital Corporation.

Dividends

Enersis Chile pays an annual dividend of $0.16 per share and has a dividend yield of 2.9%. Pinnacle West Capital Corporation pays an annual dividend of $2.78 per share and has a dividend yield of 3.1%. Pinnacle West Capital Corporation pays out 60.0% of its earnings in the form of a dividend. Enersis Chile has increased its dividend for 5 consecutive years.

Volatility and Risk

Enersis Chile has a beta of -0.5, indicating that its stock price is 150% less volatile than the S&P 500. Comparatively, Pinnacle West Capital Corporation has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Enersis Chile and Pinnacle West Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enersis Chile N/A N/A N/A
Pinnacle West Capital Corporation 14.67% 10.31% 3.16%

Insider & Institutional Ownership

6.6% of Enersis Chile shares are owned by institutional investors. Comparatively, 85.3% of Pinnacle West Capital Corporation shares are owned by institutional investors. 0.7% of Pinnacle West Capital Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Pinnacle West Capital Corporation beats Enersis Chile on 11 of the 14 factors compared between the two stocks.

Enersis Chile Company Profile

Enel Chile SA is a Chile-based electricity utility company. The Company, through its combined entities and affiliates, is engaged in the generation, transmission and distribution of electricity businesses. The Company’s segments include Generation, Distribution, and Other businesses and intercompany transaction adjustments. It owns and operates electricity generation units in Chile through its subsidiaries, Empresa Nacional de Electricidad SA, Empresa Electrica Pehuenche SA, Compania Electrica Tarapaca SA and GasAtacama SA. The Company’s electricity distribution business is conducted through Chilectra Chile SA, an electricity distribution company. The Company’s combined entity, Servicios Informaticos e Inmobiliarios Ltda, is a business consultancy that provides consulting, management, administration and contract operations related to information systems, technological information, telecommunications and control systems in South America.

Pinnacle West Capital Corporation Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

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