Enel Generación Chile (OTCMKTS:EOCCY) versus Xcel Energy (NASDAQ:XEL) Critical Contrast

Xcel Energy (NASDAQ:XEL) and Enel Generación Chile (OTCMKTS:EOCCY) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

78.4% of Xcel Energy shares are owned by institutional investors. 0.2% of Xcel Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Xcel Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Enel Generación Chile has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Xcel Energy and Enel Generación Chile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Energy	1	0	14	2	3.00
Enel Generación Chile	0	0	0	0	0.00

Xcel Energy presently has a consensus price target of $92.41, indicating a potential upside of 16.67%. Given Xcel Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Xcel Energy is more favorable than Enel Generación Chile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xcel Energy	15.28%	10.65%	2.97%
Enel Generación Chile	-13.90%	-37.57%	-20.67%

Dividends

Xcel Energy pays an annual dividend of $2.37 per share and has a dividend yield of 3.0%. Enel Generación Chile pays an annual dividend of $1.75 per share and has a dividend yield of 18.6%. Xcel Energy pays out 64.9% of its earnings in the form of a dividend. Xcel Energy has increased its dividend for 22 consecutive years.

Valuation & Earnings

This table compares Xcel Energy and Enel Generación Chile”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Energy	$14.67 billion	3.37	$2.02 billion	$3.65	21.70
Enel Generación Chile	$2.04 billion	1.26	$274.88 million	N/A	N/A

Xcel Energy has higher revenue and earnings than Enel Generación Chile.

Summary

Xcel Energy beats Enel Generación Chile on 14 of the 17 factors compared between the two stocks.

About Xcel Energy

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.

About Enel Generación Chile

Enel Generación Chile S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2019, it had 6,114 megawatts of installed capacity with 28 generation facilities and a total of 110 generation units. The company also supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. Further it provides engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.