CPFL Energia (NYSE: CPL) and Enersis Americas (NYSE:ENIA) are both mid-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitabiliy.
CPFL Energia pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Enersis Americas pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. CPFL Energia has increased its dividend for 3 consecutive years.
This table compares CPFL Energia and Enersis Americas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares CPFL Energia and Enersis Americas’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CPFL Energia||$6.23 billion||1.31||$1.26 billion||N/A||N/A|
|Enersis Americas||$8.21 billion||1.33||$2.48 billion||N/A||N/A|
Enersis Americas has higher revenue and earnings than CPFL Energia.
This is a breakdown of recent ratings and target prices for CPFL Energia and Enersis Americas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Risk & Volatility
CPFL Energia has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Enersis Americas has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Institutional and Insider Ownership
1.9% of CPFL Energia shares are owned by institutional investors. Comparatively, 15.4% of Enersis Americas shares are owned by institutional investors. 0.0% of Enersis Americas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
About CPFL Energia
CPFL Energia S.A. is a holding company. The Company, through its subsidiaries, distributes, generates, transmits and commercializes electricity in Brazil, as well as provides energy-related services. Its segments include Distribution, Conventional Generation Sources, Renewable Energy Generation, Commercialization and Services. The Company operates its distribution segment through its eight distributors. Its installed capacity in conventional generation is approximately 2,200 megawatt (MW). The Company, through its subsidiary CPFL Geracao, holds equity interests in eight Hydroelectric Power Plants. It operates in the segment of generation of energy of renewable sources, such as wind, biomass thermal plants, SHPPs and solar, through its subsidiary, CPFL Renovaveis. The Company operates in the segment of commercialization (power competitive supply) through its subsidiary, CPFL Brasil. The Company operates in the segment of value-added services providing electricity-related services.
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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