Westar Energy (NYSE: WR) and Enersis Americas (NYSE:ENIA) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
73.5% of Westar Energy shares are held by institutional investors. Comparatively, 14.9% of Enersis Americas shares are held by institutional investors. 0.6% of Westar Energy shares are held by insiders. Comparatively, 0.0% of Enersis Americas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Westar Energy and Enersis Americas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Westar Energy and Enersis Americas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Westar Energy presently has a consensus price target of $53.00, suggesting a potential upside of 3.88%. Given Westar Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Westar Energy is more favorable than Enersis Americas.
Earnings and Valuation
This table compares Westar Energy and Enersis Americas’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Westar Energy||$2.55 billion||2.84||$1.06 billion||$2.38||21.44|
|Enersis Americas||$8.85 billion||1.30||$2.60 billion||N/A||N/A|
Enersis Americas has higher revenue and earnings than Westar Energy.
Volatility & Risk
Westar Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Enersis Americas has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Westar Energy pays an annual dividend of $1.60 per share and has a dividend yield of 3.1%. Enersis Americas pays an annual dividend of $0.21 per share and has a dividend yield of 2.1%. Westar Energy pays out 67.2% of its earnings in the form of a dividend. Westar Energy has raised its dividend for 11 consecutive years. Westar Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Westar Energy beats Enersis Americas on 12 of the 16 factors compared between the two stocks.
About Westar Energy
Westar Energy, Inc. is an electric utility. The Company provides electric generation, transmission and distribution services. The Company provides these services in central and northeastern Kansas, including the cities of Topeka, Lawrence, Manhattan, Salina and Hutchinson. Its subsidiary, Kansas Gas and Electric Company (KGE), provides these services in south-central and southeastern Kansas, including the city of Wichita. Both the Company and KGE conduct business using the name Westar Energy. The Company supplies electric energy at retail to customers in Kansas. The Company also supplies electric energy at wholesale to municipalities and electric cooperatives in Kansas, and has contracts for the sale or purchase of wholesale electricity with other utilities. As of December 31, 2016, it had 6,292 megawatts (MW) of generating capacity in service.
About Enersis Americas
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.
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