Enel S.p.A. ADS (OTCMKTS:ENLAY) and NextEra Energy (NYSE:NEE) are both large-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.
This table compares Enel S.p.A. ADS and NextEra Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enel S.p.A. ADS||6.29%||10.11%||2.90%|
Enel S.p.A. ADS pays an annual dividend of $0.18 per share and has a dividend yield of 2.4%. NextEra Energy pays an annual dividend of $5.00 per share and has a dividend yield of 2.4%. NextEra Energy pays out 64.9% of its earnings in the form of a dividend. NextEra Energy has raised its dividend for 9 consecutive years.
This is a summary of recent ratings and recommmendations for Enel S.p.A. ADS and NextEra Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enel S.p.A. ADS||1||1||1||0||2.00|
NextEra Energy has a consensus price target of $207.77, indicating a potential downside of 1.02%. Given NextEra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe NextEra Energy is more favorable than Enel S.p.A. ADS.
Risk and Volatility
Enel S.p.A. ADS has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, NextEra Energy has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Insider & Institutional Ownership
0.1% of Enel S.p.A. ADS shares are held by institutional investors. Comparatively, 76.0% of NextEra Energy shares are held by institutional investors. 0.5% of NextEra Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Enel S.p.A. ADS and NextEra Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enel S.p.A. ADS||$89.37 billion||0.84||$5.66 billion||N/A||N/A|
|NextEra Energy||$16.73 billion||6.01||$6.64 billion||$7.70||27.26|
NextEra Energy has lower revenue, but higher earnings than Enel S.p.A. ADS.
NextEra Energy beats Enel S.p.A. ADS on 12 of the 16 factors compared between the two stocks.
About Enel S.p.A. ADS
Enel SpA, together with its subsidiaries, operates as an integrated electricity and gas company in South America, Europe, North and Central America, Africa, and Asia. The company generates, transmits, distributes, transports, purchases, and sells electricity; generates heat; and produces distributes, transports, and sells natural gas. It also engages in the transportation, storage, and regasification of liquefied natural gas (LNG); energy and infrastructure engineering; the design, development, construction, and operation of generation plants and grids; security and real estate activities; the management and maintenance of power plants; research and development in science and engineering; fuel supply; research and testing, inspection, certification, and engineering and consulting activities; and business consulting, administrative, management consulting, and corporate planning operations. In addition, the company is involved in the construction of electric facilities and port infrastructure; product, plant, and equipment certification; legal, trading, and mining activities; the marketing of energy products; training activities; personnel administration activities, as well as offers information technology and business services; and metering, remote control, and connectivity services through power line communication. Further, it designs, constructs, and operates merchant lines; operates optical fiber network; offers public lighting systems, fuel trading and logistics, factoring, electrical engineering, and water systems, and photovoltaic systems; and provides finance, environmental studies, and electronic plant installation and repairing services. It operates various hydroelectric, wind, renewable, geothermal, solar, thermoelectric, nuclear, and other renewable sources, and co-generation power plants with an installed capacity of approximately 85 gigawatts. The company was founded in 1962 and is headquartered in Rome, Italy.
About NextEra Energy
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of February 16, 2018, the company operated approximately 46,790 megawatts of net generating capacity. As of December 31, 2017, it served approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,000 circuit miles of transmission and distribution lines and approximately 620 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.
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