Enel Americas (NYSE:ENIA) versus Pampa Energia (NYSE:PAM) Financial Review

Enel Americas (NYSE:ENIA) and Pampa Energia (NYSE:PAM) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Enel Americas pays an annual dividend of $0.61 per share and has a dividend yield of 7.3%. Pampa Energia does not pay a dividend. Enel Americas pays out 58.1% of its earnings in the form of a dividend. Enel Americas has raised its dividend for 2 consecutive years.

Volatility and Risk

Enel Americas has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Enel Americas and Pampa Energia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Americas 0 1 1 0 2.50
Pampa Energia 0 1 4 0 2.80

Pampa Energia has a consensus price target of $49.00, indicating a potential upside of 36.49%. Given Pampa Energia’s stronger consensus rating and higher probable upside, analysts clearly believe Pampa Energia is more favorable than Enel Americas.

Valuation and Earnings

This table compares Enel Americas and Pampa Energia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Americas $13.18 billion 0.73 $1.20 billion $1.05 8.01
Pampa Energia $3.21 billion 0.82 $299.44 million ($1.53) -23.46

Enel Americas has higher revenue and earnings than Pampa Energia. Pampa Energia is trading at a lower price-to-earnings ratio than Enel Americas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Enel Americas and Pampa Energia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Americas 8.75% 13.77% 4.41%
Pampa Energia 0.88% -6.38% -1.38%

Insider and Institutional Ownership

9.2% of Enel Americas shares are owned by institutional investors. Comparatively, 37.4% of Pampa Energia shares are owned by institutional investors. 0.0% of Enel Americas shares are owned 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.

Summary

Enel Americas beats Pampa Energia on 10 of the 17 factors compared between the two stocks.

Enel Americas Company Profile

Enel Américas S.A. operates as an electricity utility company in Argentina, Brazil, Colombia, and Peru. The company, through its subsidiaries, generates, transmits, and distributes electricity using hydroelectric and thermal energy sources. As of December 31, 2017, it had 11,444 megawatts of installed generation capacity and 17.2 million distribution customers. The company was formerly known as Enersis Américas S.A. and changed its name to Enel Américas S.A. in December 2016. Enel Américas S.A. was founded in 1889 and is headquartered in Santiago, Chile. Enel Américas S.A. is a subsidiary of Enel S.p.A.

Pampa Energia Company Profile

Pampa Energía S.A., an integrated electricity company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. The company generates electricity through combined cycle gas-fired generating units, thermal generation plants, open-cycle gas turbines, and hydroelectric power generation systems, as well as through a wind farm. As of December 31, 2017, it had an electricity generation installed capacity of approximately 3,756 megawatts; 3 million electricity distribution customers in the northern region of the City of Buenos Aires and northwest of the greater Buenos Aires area; and 20,718 kilometers of high voltage transmission lines. The company is also involved in the exploration and production, and refining and distribution of oil and gas in Argentina, Venezuela, and Ecuador. In addition, it offers petrochemicals, such as intermediate gasoline products, aromatic solvents, hexane and other hydrogenated paraffinic solvents, and propellants for the cosmetic industry; and monomer styrene, and rubber and polymer products from natural gas, virgin naphtha, propane, and other supplies. As of December 31, 2017, the company had combined crude oil and natural gas proved reserves of approximately 167.1 million barrels of oil equivalent; one fully owned refinery with an installed capacity of approximately 30.2 thousand barrels per day; two storage plants with a capacity of approximately 1.2 million barrels; one lubricant plant; and three fully-owned petrochemical plants. It also operated a network of 250 gas stations. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was founded in 1945 and is headquartered in Buenos Aires, Argentina.

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