Algonquin Power & Utilities (NYSE:AQN) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
This table compares Algonquin Power & Utilities and Enel Chile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Algonquin Power & Utilities||11.23%||9.35%||3.44%|
45.4% of Algonquin Power & Utilities shares are owned by institutional investors. Comparatively, 4.7% of Enel Chile shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Algonquin Power & Utilities and Enel Chile, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Algonquin Power & Utilities||0||4||2||1||2.57|
Algonquin Power & Utilities currently has a consensus target price of $12.14, indicating a potential upside of 7.36%. Given Algonquin Power & Utilities’ stronger consensus rating and higher possible upside, research analysts clearly believe Algonquin Power & Utilities is more favorable than Enel Chile.
Risk and Volatility
Algonquin Power & Utilities has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares Algonquin Power & Utilities and Enel Chile’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Algonquin Power & Utilities||$1.65 billion||3.37||$184.99 million||$0.66||17.14|
|Enel Chile||$3.93 billion||1.21||$578.74 million||N/A||N/A|
Enel Chile has higher revenue and earnings than Algonquin Power & Utilities.
Algonquin Power & Utilities pays an annual dividend of $0.51 per share and has a dividend yield of 4.5%. Enel Chile pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. Algonquin Power & Utilities pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel Chile has increased its dividend for 2 consecutive years.
Algonquin Power & Utilities beats Enel Chile on 10 of the 16 factors compared between the two stocks.
Algonquin Power & Utilities Company Profile
Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada and the United States. It generates and sells electrical energy through a portfolio of non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with a combined gross generating capacity of approximately 1.5 gigawatt; a portfolio of regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 266,000 electric connections; 338,000 natural gas connections; and 164,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, Arizona, and Texas. The company was incorporated in 1988 and is headquartered in Oakville, Canada.
Enel Chile Company Profile
Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company also provides consulting, management, administration, and contract operation services related to information systems, technological information, telecommunications, and control systems in South America; and develops real estate projects in Chile. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is based in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.
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