CEMIG (NASDAQ: PEGI) and Pattern Energy Group (NASDAQ:PEGI) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
This is a breakdown of current recommendations and price targets for CEMIG and Pattern Energy Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pattern Energy Group||1||4||7||0||2.50|
Valuation and Earnings
This table compares CEMIG and Pattern Energy Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CEMIG||$6.80 billion||0.30||$313.51 million||$0.26||6.15|
|Pattern Energy Group||$411.34 million||4.77||-$17.90 million||$0.19||105.21|
CEMIG has higher revenue and earnings than Pattern Energy Group. CEMIG is trading at a lower price-to-earnings ratio than Pattern Energy Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
2.4% of CEMIG shares are owned by institutional investors. Comparatively, 90.1% of Pattern Energy Group shares are owned by institutional investors. 1.7% of Pattern Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
CEMIG has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Pattern Energy Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
CEMIG pays an annual dividend of $0.13 per share and has a dividend yield of 8.1%. Pattern Energy Group pays an annual dividend of $1.69 per share and has a dividend yield of 8.5%. CEMIG pays out 50.0% of its earnings in the form of a dividend. Pattern Energy Group pays out 889.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pattern Energy Group has raised its dividend for 3 consecutive years. Pattern Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares CEMIG and Pattern Energy Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pattern Energy Group||28.80%||6.91%||3.09%|
Pattern Energy Group beats CEMIG on 11 of the 16 factors compared between the two stocks.
CEMIG Company Profile
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.
Pattern Energy Group Company Profile
Pattern Energy Group Inc., an independent power company, focuses on the construction, ownership, and operation of various power projects in the United States, Canada, and Chile. It holds interests in various wind and solar power projects. The company sells electricity and renewable energy credits primarily to local utilities and local liquid independent system organizations markets. Pattern Energy Group Inc. was founded in 2012 and is headquartered in San Francisco, California.
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