TerraForm Power (NASDAQ: TERP) and Comp En De Mn Cemig ADS (NYSE:CIG) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for TerraForm Power and Comp En De Mn Cemig ADS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TerraForm Power 0 3 1 0 2.25
Comp En De Mn Cemig ADS 0 2 1 0 2.33

TerraForm Power presently has a consensus price target of $13.00, suggesting a potential downside of 1.37%. Comp En De Mn Cemig ADS has a consensus price target of $2.80, suggesting a potential upside of 10.24%. Given Comp En De Mn Cemig ADS’s stronger consensus rating and higher possible upside, analysts plainly believe Comp En De Mn Cemig ADS is more favorable than TerraForm Power.

Profitability

This table compares TerraForm Power and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TerraForm Power -19.84% -4.59% -1.62%
Comp En De Mn Cemig ADS N/A N/A N/A

Dividends

Comp En De Mn Cemig ADS pays an annual dividend of $0.13 per share and has a dividend yield of 5.1%. TerraForm Power does not pay a dividend.

Volatility and Risk

TerraForm Power has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Earnings & Valuation

This table compares TerraForm Power and Comp En De Mn Cemig ADS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TerraForm Power $654.56 million 2.51 $450.13 million ($1.47) -8.97
Comp En De Mn Cemig ADS $6.26 billion 0.51 $1.36 billion N/A N/A

Comp En De Mn Cemig ADS has higher revenue and earnings than TerraForm Power.

Insider and Institutional Ownership

81.4% of TerraForm Power shares are owned by institutional investors. Comparatively, 3.2% of Comp En De Mn Cemig ADS shares are owned by institutional investors. 34.6% of TerraForm Power shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Comp En De Mn Cemig ADS beats TerraForm Power on 9 of the 12 factors compared between the two stocks.

About TerraForm Power

TerraForm Power, Inc. is a United States-based holding company. The Company owns clean power generation assets. This includes solar and wind assets located in the United States, Canada and other markets. Its clean power generation assets serve utility, commercial and residential customers. As of December 31, 2016, the Company’s portfolio consisted of renewable energy facilities located in the United States, Canada, the United Kingdom and Chile with a combined nameplate capacity of 2,983.1 megawatts. It owns and operates over 500 hundred wind and solar clean energy power installations. Its projects include Bluebird, River Mountains Solar, Laho Solar, SunE Perpetual Lindsday, Sandringham, California Public institutions and Summit Solar Projects. The Company holds interest in TerraForm Power, LLC (Terra LLC), which is an owner and operator of renewable energy facilities that have long-term contractual arrangements to sell the electricity generated by these facilities to third parties.

About Comp En De Mn Cemig ADS

Companhia Energetica de Minas Gerais-CEMIG is a holding company that is engaged in the generation, transmission and distribution of electricity. The Company’s segments include Generation, Transmission, Distribution, Telecom, Gas and Other. The Company, through its interests in subsidiaries or jointly controlled entities, is engaged in the activities of the construction and operation of systems for sale of electricity, as well as various fields of energy and telecommunications, for the purpose of commercial operation. Its electric power transmission business consists of transporting power from the facilities where it is generated to points of consumption, distribution networks and Free Consumers. Its distribution operation consists of transfers of electricity from distribution substations to final consumers. It is also engaged in businesses, such as telecommunications, energy solutions consulting, and acquisition, transport and distribution of gas and its subproducts and derivatives.

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