Reviewing Light (LGSXY) and Its Competitors

Dividends

Light pays an annual dividend of $1.41 per share and has a dividend yield of 124.1%. Light pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 421.2% of their earnings in the form of a dividend. Light is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Light and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Light	N/A	N/A	N/A
Light Competitors	-42.73%	13.91%	0.81%

Insider and Institutional Ownership

0.0% of Light shares are owned by institutional investors. Comparatively, 36.2% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.5% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Light and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Light	N/A	N/A	0.86
Light Competitors	$6.36 billion	$832.74 million	8.93

Light’s competitors have higher revenue and earnings than Light. Light is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Light competitors beat Light on 6 of the 9 factors compared.

Light Company Profile

Light S.A., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electric power in Brazil. The company distributes electricity in the state of Rio de Janeiro. It also engages in the research, planning, building, operation, and exploration of generation and transmission systems; purchase, sale, import, and export of electric and thermal power, and gas and industrial utilities; provision of consulting services in the energy sector; lease of real estate and personal properties; acquisition and sale of goods related to the studies and projects; implementation, operation, and maintenance of construction works and facilities; and trading activities. In addition, it provides services to low voltage clients, including the assembly, renovation, and maintenance of facilities. The company primarily serves residential, commercial, and industrial customers. Light S.A. was founded in 1899 and is based in Rio de Janeiro, Brazil.