Public Service Enterprise Group (NYSE:PEG) & Pampa Energia (NYSE:PAM) Critical Comparison

Pampa Energia (NYSE:PAM) and Public Service Enterprise Group (NYSE:PEG) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

12.8% of Pampa Energia shares are held by institutional investors. Comparatively, 73.3% of Public Service Enterprise Group shares are held by institutional investors. 55.5% of Pampa Energia shares are held by insiders. Comparatively, 0.2% of Public Service Enterprise Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Pampa Energia has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Public Service Enterprise Group has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Pampa Energia and Public Service Enterprise Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pampa Energia	20.31%	12.23%	6.75%
Public Service Enterprise Group	17.69%	12.30%	3.66%

Valuation & Earnings

This table compares Pampa Energia and Public Service Enterprise Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pampa Energia	$2.00 billion	2.14	$377.00 million	$8.02	9.82
Public Service Enterprise Group	$12.79 billion	3.00	$2.11 billion	$4.52	17.06

Public Service Enterprise Group has higher revenue and earnings than Pampa Energia. Pampa Energia is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pampa Energia and Public Service Enterprise Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pampa Energia	0	1	2	1	3.00
Public Service Enterprise Group	0	7	7	1	2.60

Pampa Energia currently has a consensus price target of $105.00, indicating a potential upside of 33.28%. Public Service Enterprise Group has a consensus price target of $93.42, indicating a potential upside of 21.14%. Given Pampa Energia’s stronger consensus rating and higher possible upside, analysts clearly believe Pampa Energia is more favorable than Public Service Enterprise Group.

About Pampa Energia

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.