Contrasting UNITIL (UTL) and Pampa Energia (PAM)

UNITIL (NYSE: UTL) and Pampa Energia (NYSE:PAM) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Earnings and Valuation

This table compares UNITIL and Pampa Energia’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UNITIL $383.40 million 1.68 $27.10 million $2.00 21.91
Pampa Energia $2.13 billion 2.42 -$740,000.00 $3.32 21.07

UNITIL has higher earnings, but lower revenue than Pampa Energia. Pampa Energia is trading at a lower price-to-earnings ratio than UNITIL, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

UNITIL has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Dividends

UNITIL pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. Pampa Energia does not pay a dividend. UNITIL pays out 72.0% of its earnings in the form of a dividend. Pampa Energia has raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

58.2% of UNITIL shares are owned by institutional investors. Comparatively, 44.2% of Pampa Energia shares are owned by institutional investors. 2.5% of UNITIL shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for UNITIL and Pampa Energia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UNITIL 0 2 1 0 2.33
Pampa Energia 0 1 2 0 2.67

UNITIL currently has a consensus target price of $48.67, suggesting a potential upside of 11.09%. Pampa Energia has a consensus target price of $72.00, suggesting a potential upside of 2.95%. Given UNITIL’s higher possible upside, research analysts clearly believe UNITIL is more favorable than Pampa Energia.

Profitability

This table compares UNITIL and Pampa Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UNITIL 7.09% 9.39% 2.45%
Pampa Energia 6.65% 24.73% 4.64%

Summary

Pampa Energia beats UNITIL on 10 of the 17 factors compared between the two stocks.

About UNITIL

Unitil Corporation is a public utility holding company. The Company’s principal business is the local distribution of electricity in the southeastern seacoast and state capital regions of New Hampshire and the greater Fitchburg area of north central Massachusetts and the local distribution of natural gas in southeastern New Hampshire, portions of southern Maine to the Lewiston-Auburn area and in the greater Fitchburg area of north central Massachusetts. Its segments include utility gas operations, utility electric operations and non-regulated. Its operations include natural gas operations; natural gas distribution utility operations; gas transmission pipeline operations; electric distribution utility operations, and non-regulated and other non-utility operations. As of December 31, 2016, it was engaged in the distribution of electricity and natural gas to approximately 184,200 customers throughout its service territories in the states of New Hampshire, Massachusetts and Maine.

About Pampa Energia

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

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