Enersis Americas (NYSE: ENIA) and Pinnacle West Capital Corporation (NYSE:PNW) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enersis Americas and Pinnacle West Capital Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enersis Americas 0 1 0 0 2.00
Pinnacle West Capital Corporation 1 8 0 0 1.89

Pinnacle West Capital Corporation has a consensus target price of $84.00, indicating a potential downside of 2.78%. Given Pinnacle West Capital Corporation’s higher probable upside, analysts clearly believe Pinnacle West Capital Corporation is more favorable than Enersis Americas.

Dividends

Enersis Americas pays an annual dividend of $0.21 per share and has a dividend yield of 2.0%. Pinnacle West Capital Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 3.0%. Pinnacle West Capital Corporation pays out 58.0% of its earnings in the form of a dividend. Enersis Americas has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Enersis Americas and Pinnacle West Capital Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enersis Americas $8.85 billion 1.38 $2.60 billion N/A N/A
Pinnacle West Capital Corporation $3.53 billion 2.73 $1.53 billion $4.52 19.12

Enersis Americas has higher revenue and earnings than Pinnacle West Capital Corporation.

Risk & Volatility

Enersis Americas has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Pinnacle West Capital Corporation has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares Enersis Americas and Pinnacle West Capital Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enersis Americas N/A N/A N/A
Pinnacle West Capital Corporation 14.37% 10.20% 3.14%

Insider and Institutional Ownership

9.2% of Enersis Americas shares are owned by institutional investors. Comparatively, 84.2% of Pinnacle West Capital Corporation shares are owned by institutional investors. 0.0% of Enersis Americas shares are owned by insiders. Comparatively, 0.7% of Pinnacle West Capital Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Pinnacle West Capital Corporation beats Enersis Americas on 8 of the 15 factors compared between the two stocks.

Enersis Americas Company Profile

Enel Americas S.A., formerly Enersis Americas S.A., through its subsidiaries and jointly controlled entities, is engaged in the electricity generation, transmission and distribution businesses in Chile, Brazil, Colombia, Peru and Argentina. The Company operates through two segments: Generation and Transmission, and Distribution. The Company’s Generation and Transmission segment operates through companies, including Central Comercializadora de Energia S.A. (Cemsa); Central Dock Sud S.A. (Dock Sud); Central Costanera S.A. (Costanera), and Hidroelectrica El Chocon S.A. (El Chocon). The Company’s Distribution segment operates through companies, including Empresa Distribuidora Sur S.A. (Edesur); Ampla Energia e Servicos S.A. (Ampla), and Companhia Energetica do Ceara S.A. (Coelce). The Company is engaged in non-electricity business through its subsidiary, Servicios Informaticos e Inmobiliarios Ltda. (SIEI). It holds interest in Yacylec S.A., which is an electricity transmission company.

Pinnacle West Capital Corporation Company Profile

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

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