Analyzing Enel S.p.A. ADS (OTCMKTS:ENLAY) and Black Hills (OTCMKTS:BKH)

Enel S.p.A. ADS (OTCMKTS:ENLAY) and Black Hills (NYSE:BKH) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider and Institutional Ownership

0.1% of Enel S.p.A. ADS shares are owned by institutional investors. Comparatively, 88.9% of Black Hills shares are owned by institutional investors. 1.0% of Black Hills 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.



Profitability

This table compares Enel S.p.A. ADS and Black Hills’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel S.p.A. ADS 6.29% 10.11% 2.90%
Black Hills 12.65% 8.99% 2.92%

Dividends

Enel S.p.A. ADS pays an annual dividend of $0.17 per share and has a dividend yield of 2.4%. Black Hills pays an annual dividend of $2.02 per share and has a dividend yield of 2.7%. Black Hills pays out 57.1% of its earnings in the form of a dividend. Black Hills has raised its dividend for 49 consecutive years. Black Hills is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Enel S.p.A. ADS has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Enel S.p.A. ADS and Black Hills, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel S.p.A. ADS 1 2 0 0 1.67
Black Hills 0 5 0 0 2.00

Black Hills has a consensus price target of $69.00, indicating a potential downside of 9.05%. Given Black Hills’ stronger consensus rating and higher probable upside, analysts plainly believe Black Hills is more favorable than Enel S.p.A. ADS.

Valuation and Earnings

This table compares Enel S.p.A. ADS and Black Hills’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel S.p.A. ADS $89.37 billion 0.82 $5.66 billion N/A N/A
Black Hills $1.75 billion 2.64 $258.44 million $3.54 21.43

Enel S.p.A. ADS has higher revenue and earnings than Black Hills.

Summary

Black Hills beats Enel S.p.A. ADS on 10 of the 15 factors compared between the two stocks.

Enel S.p.A. ADS Company Profile

Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines. It is also involved in energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations. In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities. Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation and repairing; and security services. Additionally, the company offers water systems; public lighting systems and services; upstream gas; electric mobility; and environmental studies services. It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.

Black Hills Company Profile

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates through Electric Utilities, Gas Utilities, Power Generation, and Mining segments. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 212,000 electric customers in Colorado, Montana, South Dakota, and Wyoming, as well as provides electrical system construction services to large industrial customers. This segment owns 939 megawatts of generation capacity and 8,858 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,054,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. It also provides appliance repair services to residential customers through company technicians and third-party service providers; and constructs and maintains gas infrastructure facilities for gas transportation customers. This segment owns and operates approximately 4,700 miles of intrastate gas transmission pipelines; 41,158 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The Power Generation segment produces electric power through wind, natural gas, and coal generating plants; and sells the electric capacity and energy primarily to utilities under long-term contracts. The Mining segment produces coal at its coal mine located near Gillette, Wyoming; and sells the coal to electric generation facilities. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.

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