Enersis Americas (ENIA) and OGE Energy Corporation (OGE) Critical Contrast
Enersis Americas (NYSE: ENIA) and OGE Energy Corporation (NYSE:OGE) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
9.0% of Enersis Americas shares are held by institutional investors. Comparatively, 62.5% of OGE Energy Corporation shares are held by institutional investors. 0.0% of Enersis Americas shares are held by company insiders. Comparatively, 0.5% of OGE Energy Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Enersis Americas and OGE Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OGE Energy Corporation||16.50%||11.06%||3.80%|
Valuation and Earnings
This table compares Enersis Americas and OGE Energy 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||1.37||$2.60 billion||N/A||N/A|
|OGE Energy Corporation||$2.32 billion||3.18||$811.70 million||$1.91||19.37|
Enersis Americas has higher revenue and earnings than OGE Energy Corporation.
Enersis Americas pays an annual dividend of $0.21 per share and has a dividend yield of 2.0%. OGE Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 3.6%. OGE Energy Corporation pays out 69.6% of its earnings in the form of a dividend. OGE Energy Corporation has raised its dividend for 10 consecutive years. OGE Energy Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Enersis Americas has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, OGE Energy Corporation has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Enersis Americas and OGE Energy Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OGE Energy Corporation||1||5||2||0||2.13|
OGE Energy Corporation has a consensus target price of $36.14, indicating a potential downside of 2.32%. Given OGE Energy Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe OGE Energy Corporation is more favorable than Enersis Americas.
OGE Energy Corporation beats Enersis Americas on 12 of the 16 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.
OGE Energy Corporation Company Profile
OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.
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