Equatorial Energia (OTCMKTS:EQUEY) & Comp En De Mn Cemig ADS (NYSE:CIG) Financial Comparison

Comp En De Mn Cemig ADS (NYSE:CIG) and Equatorial Energia (OTCMKTS:EQUEY) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Dividends

Comp En De Mn Cemig ADS pays an annual dividend of $0.22 per share and has a dividend yield of 10.2%. Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.0%. Comp En De Mn Cemig ADS pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Comp En De Mn Cemig ADS and Equatorial Energia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comp En De Mn Cemig ADS	$43.39 billion	0.14	$877.05 million	$0.19	11.34
Equatorial Energia	N/A	N/A	N/A	$0.25	30.85

Comp En De Mn Cemig ADS has higher revenue and earnings than Equatorial Energia. Comp En De Mn Cemig ADS is trading at a lower price-to-earnings ratio than Equatorial Energia, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Comp En De Mn Cemig ADS and Equatorial Energia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comp En De Mn Cemig ADS	0	1	0	0	2.00
Equatorial Energia	0	0	0	0	0.00

Institutional and Insider Ownership

0.0% of Equatorial Energia shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Comp En De Mn Cemig ADS and Equatorial Energia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comp En De Mn Cemig ADS	11.12%	17.63%	7.75%
Equatorial Energia	N/A	N/A	N/A

Summary

Comp En De Mn Cemig ADS beats Equatorial Energia on 6 of the 10 factors compared between the two stocks.

About Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

About Equatorial Energia

Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.