EDP – Energias de Portugal (OTCMKTS:EDPFY) and Centrica (OTCMKTS:CPYYY) Critical Comparison

EDP – Energias de Portugal (OTCMKTS:EDPFY) and Centrica (OTCMKTS:CPYYY) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Institutional and Insider Ownership

0.0% of EDP – Energias de Portugal shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares EDP – Energias de Portugal and Centrica’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EDP – Energias de Portugal $16.05 billion 1.49 $573.16 million $1.57 41.81
Centrica $28.95 billion 0.12 -$1.31 billion $0.37 6.68

EDP – Energias de Portugal has higher earnings, but lower revenue than Centrica. Centrica is trading at a lower price-to-earnings ratio than EDP – Energias de Portugal, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for EDP – Energias de Portugal and Centrica, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EDP – Energias de Portugal 0 2 4 1 2.86
Centrica 0 4 6 0 2.60

Profitability

This table compares EDP – Energias de Portugal and Centrica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EDP – Energias de Portugal 3.96% 4.48% 1.34%
Centrica N/A N/A N/A

Volatility & Risk

EDP – Energias de Portugal has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Centrica has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Summary

EDP – Energias de Portugal beats Centrica on 10 of the 13 factors compared between the two stocks.

EDP – Energias de Portugal Company Profile

EDP – Energias de Portugal, S.A. engages in the generation, transportation, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration sources. It also distributes and supplies natural gas. The company has an installed capacity of 27 GW; and serves 9,827,505 electricity customers and 1,599,232 gas customers. It also operates 286,470 kilometers of distribution overhead lines; and 54,274 kilometers of distribution underground lines. In addition, the company offers engineering, laboratory tests, professional training, energy, and property management services. EDP – Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal.

Centrica Company Profile

Centrica plc operates as an integrated energy company in the United Kingdom, the Republic of Ireland, Norway, the United States, Canada, and internationally. The company operates through Centrica Consumer, Centrica Business, and Upstream segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from combined cycle gas turbines and nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating and cooling systems and related appliances, as well as offers maintenance/breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage, and franchise network. The company also provides liquefied natural gas vessel chartering services. It primarily supplies energy and services to approximately 26.2 million customers under the British Gas, Bord Gáis, Direct Energy, and Hive brands. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was incorporated in 1995 and is headquartered in Windsor, the United Kingdom.

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