Reviewing Ameren (NYSE:AEE) & Energias de Portugal (OTCMKTS:EDPFY)

Ameren (NYSE:AEE) and Energias de Portugal (OTCMKTS:EDPFY) are both large-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Dividends

Ameren pays an annual dividend of $3.00 per share and has a dividend yield of 2.8%. Energias de Portugal pays an annual dividend of $1.51 per share and has a dividend yield of 3.0%. Ameren pays out 54.0% of its earnings in the form of a dividend. Energias de Portugal pays out 193.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameren has raised its dividend for 12 consecutive years.

Volatility and Risk

Ameren has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Energias de Portugal has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ameren and Energias de Portugal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameren	$8.80 billion	3.40	$1.46 billion	$5.56	19.42
Energias de Portugal	N/A	N/A	N/A	$0.78	65.55

Ameren has higher revenue and earnings than Energias de Portugal. Ameren is trading at a lower price-to-earnings ratio than Energias de Portugal, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.1% of Ameren shares are owned by institutional investors. 0.3% of Ameren shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Ameren and Energias de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameren	17.17%	10.94%	2.99%
Energias de Portugal	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Ameren and Energias de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameren	0	5	9	0	2.64
Energias de Portugal	0	1	0	1	3.00

Ameren presently has a consensus price target of $117.54, suggesting a potential upside of 8.85%. Given Ameren’s higher possible upside, equities analysts clearly believe Ameren is more favorable than Energias de Portugal.

Summary

Ameren beats Energias de Portugal on 11 of the 16 factors compared between the two stocks.

About Ameren

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.

About Energias de Portugal

EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.