Empresa Nacional de Electricidad (NYSE: EOCC) and Pepco Holdings (NYSE:POM) are both mid-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Empresa Nacional de Electricidad and Pepco Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Empresa Nacional de Electricidad N/A N/A N/A
Pepco Holdings 10.52% 11.08% 2.95%

Insider & Institutional Ownership

2.7% of Empresa Nacional de Electricidad shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Empresa Nacional de Electricidad pays an annual dividend of $1.14 per share and has a dividend yield of 4.4%. Pepco Holdings pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. Pepco Holdings pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and target prices for Empresa Nacional de Electricidad and Pepco Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Empresa Nacional de Electricidad 2 0 0 0 1.00
Pepco Holdings 0 0 0 0 N/A

Empresa Nacional de Electricidad presently has a consensus target price of $24.20, suggesting a potential downside of 7.35%. Given Empresa Nacional de Electricidad’s higher possible upside, equities research analysts clearly believe Empresa Nacional de Electricidad is more favorable than Pepco Holdings.

Earnings and Valuation

This table compares Empresa Nacional de Electricidad and Pepco Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Empresa Nacional de Electricidad $2.46 billion 2.91 $614.32 million N/A N/A
Pepco Holdings N/A N/A N/A $1.25 21.54

Empresa Nacional de Electricidad has higher revenue and earnings than Pepco Holdings.

Summary

Empresa Nacional de Electricidad beats Pepco Holdings on 5 of the 8 factors compared between the two stocks.

About Empresa Nacional de Electricidad

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.

About Pepco Holdings

Pepco Holdings LLC, formerly Pepco Holdings, Inc., is a holding company. The Company, through its utility subsidiaries, is engaged in the transmission, distribution and default supply of electricity, and the distribution and supply of natural gas. The Company’s segments include Power Delivery, Pepco Energy Services, and Corporate and Other. The Company’s subsidiaries include Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Pepco is engaged in the transmission, distribution and default supply of electricity. DPL is involved in the transmission, distribution and default supply of electricity, and distribution and supply of natural gas. ACE is engaged in the transmission, distribution and default supply of electricity. The Company’s subsidiaries own and operate a network of wires, substations and other equipment that are classified as transmission facilities, distribution facilities or common facilities.

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