Enel Chile (NYSE:ENIC) and NextEra Energy (NYSE:NEE) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
4.6% of Enel Chile shares are held by institutional investors. Comparatively, 77.1% of NextEra Energy shares are held by institutional investors. 0.5% of NextEra Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Enel Chile has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, NextEra Energy has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
Enel Chile pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. NextEra Energy pays an annual dividend of $5.00 per share and has a dividend yield of 1.8%. NextEra Energy pays out 59.7% of its earnings in the form of a dividend. Enel Chile has raised its dividend for 2 consecutive years and NextEra Energy has raised its dividend for 10 consecutive years. NextEra Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and target prices for Enel Chile and NextEra Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NextEra Energy has a consensus target price of $242.62, suggesting a potential downside of 13.98%. Given NextEra Energy’s higher probable upside, analysts clearly believe NextEra Energy is more favorable than Enel Chile.
This table compares Enel Chile and NextEra Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Enel Chile and NextEra Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enel Chile||$3.93 billion||1.19||$578.74 million||N/A||N/A|
|NextEra Energy||$19.20 billion||7.18||$3.77 billion||$8.37||33.70|
NextEra Energy has higher revenue and earnings than Enel Chile.
NextEra Energy beats Enel Chile on 13 of the 15 factors compared between the two stocks.
Enel Chile Company Profile
Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company also provides consulting, management, administration, and contract operation services related to information systems, technological information, telecommunications, and control systems in South America; and develops real estate projects in Chile. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is based in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.
NextEra Energy Company Profile
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of February 16, 2018, the company operated approximately 46,790 megawatts of net generating capacity. As of December 31, 2017, it served approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,000 circuit miles of transmission and distribution lines and approximately 620 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.
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