Financial Review: Great Plains Energy (GXP) vs. Empresa Nacional de Electricidad (EOCC)
Great Plains Energy (NYSE: GXP) and Empresa Nacional de Electricidad (NYSE:EOCC) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Institutional and Insider Ownership
88.6% of Great Plains Energy shares are owned by institutional investors. Comparatively, 2.7% of Empresa Nacional de Electricidad shares are owned by institutional investors. 0.4% of Great Plains Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Great Plains Energy has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Empresa Nacional de Electricidad has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Great Plains Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.6%. Empresa Nacional de Electricidad pays an annual dividend of $1.14 per share and has a dividend yield of 4.5%. Great Plains Energy pays out 105.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empresa Nacional de Electricidad has increased its dividend for 6 consecutive years. Empresa Nacional de Electricidad is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and price targets for Great Plains Energy and Empresa Nacional de Electricidad, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Plains Energy||0||3||6||0||2.67|
|Empresa Nacional de Electricidad||0||1||0||0||2.00|
Great Plains Energy currently has a consensus price target of $31.71, suggesting a potential upside of 3.44%. Empresa Nacional de Electricidad has a consensus price target of $24.20, suggesting a potential downside of 5.32%. Given Great Plains Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Great Plains Energy is more favorable than Empresa Nacional de Electricidad.
This table compares Great Plains Energy and Empresa Nacional de Electricidad’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Plains Energy||8.00%||5.62%||1.82%|
|Empresa Nacional de Electricidad||N/A||N/A||N/A|
Valuation & Earnings
This table compares Great Plains Energy and Empresa Nacional de Electricidad’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Great Plains Energy||$2.69 billion||2.46||$1.11 billion||$1.04||29.48|
|Empresa Nacional de Electricidad||$2.41 billion||2.90||$849.70 million||N/A||N/A|
Great Plains Energy has higher revenue and earnings than Empresa Nacional de Electricidad.
Great Plains Energy beats Empresa Nacional de Electricidad on 10 of the 15 factors compared between the two stocks.
Great Plains Energy Company Profile
Great Plains Energy Incorporated (Great Plains Energy) is a utility holding company. The Company operates through electric utility segment. The Company’s subsidiaries with operations include Kansas City Power & Light Company (KCP&L) and KCP&L Greater Missouri Operations Company (GMO). KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. Kansas City Power & Light Receivables Company (KCP&L Receivables Company) is the KCP&L’s subsidiary. GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO’s subsidiaries include GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant). As of December 31, 2016, electric utility had approximately 6,500 megawatts (MWs) of owned generating capacity.
Empresa Nacional de Electricidad Company Profile
Enel Generacion Chile SA, formerly Empresa Nacional De Electricidad SA, is a Chile-based company engaged in the business of electricity generation. The Company operates in Chile. The Company owns and operates a total of approximately 111-generation units in Chile both directly and through its subsidiaries, Pehuenche, Celta and GasAtacama. Of these generation units, approximately 38 are hydroelectric, with a total installed capacity of over 3,470 megawatts. There are approximately 22 thermal generation units that operate with gas, coal or oil with a total installed capacity of over 2,808 megawatts. There are over 51 wind powered generation units with an aggregate installed capacity of approximately 78 megawatts. The Company’s subsidiaries include Compania Electrica San Isidro S.A. (San Isidro), Compania Electrica Tarapaca S.A. (Celta), Empresa Electrica Pehuenche S.A. (Pehuenche) and GasAtacama S.A (GasAtacama). It is controlled by Enel Chile SA.
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