Head-To-Head Survey: Entergy (NYSE:ETR) vs. Iberdrola (OTCMKTS:IBDRY)

Entergy (NYSE:ETR) and Iberdrola (OTCMKTS:IBDRY) are both large-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Entergy and Iberdrola, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entergy	0	2	20	0	2.91
Iberdrola	0	5	4	0	2.44

Entergy presently has a consensus price target of $121.57, suggesting a potential upside of 8.76%. Given Entergy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Entergy is more favorable than Iberdrola.

Profitability

This table compares Entergy and Iberdrola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entergy	14.63%	11.44%	2.68%
Iberdrola	14.74%	9.56%	3.68%

Valuation & Earnings

This table compares Entergy and Iberdrola”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entergy	$12.95 billion	4.13	$1.77 billion	$4.35	25.70
Iberdrola	$51.52 billion	3.35	$7.11 billion	$4.52	22.89

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

Dividends

Entergy pays an annual dividend of $2.56 per share and has a dividend yield of 2.3%. Iberdrola pays an annual dividend of $3.00 per share and has a dividend yield of 2.9%. Entergy pays out 58.9% of its earnings in the form of a dividend. Iberdrola pays out 66.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Entergy has increased its dividend for 10 consecutive years.

Institutional & Insider Ownership

88.1% of Entergy shares are owned by institutional investors. Comparatively, 0.0% of Iberdrola shares are owned by institutional investors. 0.2% of Entergy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Entergy has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Summary

Entergy beats Iberdrola on 9 of the 17 factors compared between the two stocks.

About Entergy

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. It generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. It also engages in the ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides decommissioning services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company’s power plants have approximately 24,000 megawatts of electric generating capacity. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is headquartered in New Orleans, Louisiana.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.