Central Puerto (NYSE:CEPU) vs. Meren Energy (OTCMKTS:AOIFF) Head to Head Review

Central Puerto (NYSE:CEPU) and Meren Energy (OTCMKTS:AOIFF) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations for Central Puerto and Meren Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Puerto	0	1	1	0	2.50
Meren Energy	0	0	0	0	0.00

Central Puerto presently has a consensus price target of $17.50, suggesting a potential upside of 10.44%. Given Central Puerto’s stronger consensus rating and higher probable upside, research analysts clearly believe Central Puerto is more favorable than Meren Energy.

Volatility & Risk

Central Puerto has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Meren Energy has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Central Puerto and Meren Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Puerto	$782.60 million	3.06	$277.08 million	$2.08	7.62
Meren Energy	N/A	N/A	-$279.10 million	($0.52)	-2.50

Central Puerto has higher revenue and earnings than Meren Energy. Meren Energy is trading at a lower price-to-earnings ratio than Central Puerto, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Central Puerto and Meren Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Puerto	37.86%	15.93%	11.06%
Meren Energy	N/A	3.52%	1.68%

Insider and Institutional Ownership

3.0% of Central Puerto shares are held by institutional investors. 0.1% of Central Puerto shares are held by company insiders. Comparatively, 1.0% of Meren Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Central Puerto beats Meren Energy on 12 of the 13 factors compared between the two stocks.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

About Meren Energy

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.