E.On (OTCMKTS:ENAKF – Get Free Report) and Brookfield Infrastructure (NYSE:BIPC – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership
25.1% of E.On shares are owned by institutional investors. Comparatively, 70.4% of Brookfield Infrastructure shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends
E.On pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Brookfield Infrastructure pays an annual dividend of $1.82 per share and has a dividend yield of 4.3%. E.On pays out -238.1% of its earnings in the form of a dividend. Brookfield Infrastructure has increased its dividend for 5 consecutive years. Brookfield Infrastructure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| E.On | N/A | N/A | N/A |
| Brookfield Infrastructure | N/A | N/A | N/A |
Earnings and Valuation
This table compares E.On and Brookfield Infrastructure”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| E.On | N/A | N/A | N/A | ($0.25) | -89.17 |
| Brookfield Infrastructure | $3.70 billion | 1.41 | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings for E.On and Brookfield Infrastructure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| E.On | 0 | 0 | 0 | 0 | 0.00 |
| Brookfield Infrastructure | 2 | 0 | 0 | 0 | 1.00 |
Brookfield Infrastructure has a consensus price target of $48.00, suggesting a potential upside of 13.56%. Given Brookfield Infrastructure’s stronger consensus rating and higher possible upside, analysts clearly believe Brookfield Infrastructure is more favorable than E.On.
Summary
Brookfield Infrastructure beats E.On on 7 of the 8 factors compared between the two stocks.
About E.On
E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer Solutions. The Energy Networks segment operates power and gas distribution networks, as well as provides maintenance, repairs, and related services. The Customer Solutions segment supplies power, gas, and heat, as well as with products and services that enhance energy efficiency to residential, small and medium-sized enterprises, large commercial and industrial, sales partners, and public entities. Additionally, it provides SmartSim, a software solution that allows renewable gases to be fed into gas grids; gas quality tracking solutions; GasPro, a mobile gas sample collector; metering solutions; and GasCalc, a software that calculates natural gases, LNG, and biogases properties. The company was founded in 1923 and is headquartered in Essen, Germany.
About Brookfield Infrastructure
Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.
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