El Paso Electric (NYSE:EE) and ENGIE BRASIL EN/S (OTCMKTS:EGIEY) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares El Paso Electric and ENGIE BRASIL EN/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|El Paso Electric||$903.60 million||2.69||$84.32 million||$2.33||25.60|
|ENGIE BRASIL EN/S||$2.20 billion||3.98||$627.46 million||N/A||N/A|
El Paso Electric pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. ENGIE BRASIL EN/S pays an annual dividend of $0.76 per share and has a dividend yield of 7.1%. El Paso Electric pays out 61.8% of its earnings in the form of a dividend. El Paso Electric has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
95.5% of El Paso Electric shares are held by institutional investors. 1.2% of El Paso Electric shares are held 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.
This table compares El Paso Electric and ENGIE BRASIL EN/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Paso Electric||10.79%||8.61%||2.75%|
|ENGIE BRASIL EN/S||26.75%||32.19%||11.17%|
This is a breakdown of recent ratings for El Paso Electric and ENGIE BRASIL EN/S, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Paso Electric||0||3||0||0||2.00|
|ENGIE BRASIL EN/S||0||1||0||0||2.00|
El Paso Electric presently has a consensus target price of $55.33, indicating a potential downside of 7.22%. Given El Paso Electric’s higher possible upside, research analysts plainly believe El Paso Electric is more favorable than ENGIE BRASIL EN/S.
Risk & Volatility
El Paso Electric has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, ENGIE BRASIL EN/S has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
ENGIE BRASIL EN/S beats El Paso Electric on 8 of the 14 factors compared between the two stocks.
About El Paso Electric
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,085 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 425,000 residential, commercial, industrial, public authority, and wholesale customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
About ENGIE BRASIL EN/S
Engie Brasil Energia S.A., together with its subsidiaries, generates and sells electrical energy in Brazil. It operates 31 plants, including 11 hydroelectric power plants; 7 thermal power plants, which comprise 3 coal, 3 biomass, and 1 natural gas power plants; 9 wind farms; 2 photovoltaic solar power plants; and 2 small hydroelectric plants in the states of Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Minas Gerais, Mato Grosso do Sul, Mato Grosso, Goiás, Tocantins, Maranhão, Piauí, and Ceará. As of February 23, 2018, the company had an installed capacity of 10,898.8 megawatts. It also engages in buying and selling conventional and incentivized energy. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. is a subsidiary of ENGIE Brasil Participações Ltda.
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