Financial Comparison: Enel Chile (NYSE:ENIC) vs. Endesa (OTCMKTS:ELEZY)

Enel Chile (NYSE:ENIC) and Endesa (OTCMKTS:ELEZY) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Dividends

Enel Chile pays an annual dividend of $0.29 per share and has a dividend yield of 9.8%. Endesa pays an annual dividend of $0.55 per share and has a dividend yield of 6.0%. Enel Chile pays out 54.7% of its earnings in the form of a dividend. Endesa pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel Chile is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

3.2% of Enel Chile shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Enel Chile and Endesa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enel Chile	14.69%	127.33%	47.10%
Endesa	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Enel Chile and Endesa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel Chile	0	1	0	0	2.00
Endesa	0	2	0	0	2.00

Valuation & Earnings

This table compares Enel Chile and Endesa’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enel Chile	$5.23 billion	0.79	$760.15 million	$0.53	5.60
Endesa	N/A	N/A	N/A	$0.73	12.49

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

Summary

Enel Chile beats Endesa on 7 of the 9 factors compared between the two stocks.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).

About Endesa

Endesa, S.A. engages in the generation, distribution, and sale of electricity in Spain, Portugal, France, Germany, Morocco, Italy, the United Kingdom, Singapore, and internationally. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. It also offers advisory services and technology relating to energy efficiency, distributed generation, and energy demand management; deploys structures for recharging electric vehicles, vehicle-to-grid, and second-life services for batteries; develops integrated services for local administrations, such as public lighting, smart city development, energy efficiency services, and solutions for connectivity; and provides energy producers with financial solutions, as well as provides engineering and construction activities for facilities related to the electricity business. As of December 31, 2023, it had an installed capacity of 21,247 MW in Spain; operates 319,136 km of distribution and transmission networks; and distributes electricity to 10,522 thousands customers and gas to 1,829 thousands customers. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. The company was incorporated in 1944 and is headquartered in Madrid, Spain. Endesa, S.A. operates as a subsidiary of Enel Iberia Srl.