Critical Analysis: TerraForm Power (TERP) versus Comp En De Mn Cemig ADS (CIG)
TerraForm Power (NASDAQ: TERP) and Comp En De Mn Cemig ADS (NYSE:CIG) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
80.8% of TerraForm Power shares are owned by institutional investors. Comparatively, 2.7% of Comp En De Mn Cemig ADS shares are owned by institutional investors. 34.6% of TerraForm Power shares are owned 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.
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|
|Comp En De Mn Cemig ADS||N/A||N/A||N/A|
Comp En De Mn Cemig ADS pays an annual dividend of $0.13 per share and has a dividend yield of 4.6%. TerraForm Power does not pay a dividend.
This is a summary of recent ratings and recommmendations for TerraForm Power and Comp En De Mn Cemig ADS, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comp En De Mn Cemig ADS||0||2||1||0||2.33|
TerraForm Power currently has a consensus price target of $13.00, indicating a potential downside of 3.06%. Comp En De Mn Cemig ADS has a consensus price target of $2.80, indicating a potential downside of 1.41%. Given Comp En De Mn Cemig ADS’s stronger consensus rating and higher probable upside, analysts plainly believe Comp En De Mn Cemig ADS is more favorable than TerraForm Power.
Volatility & Risk
TerraForm Power has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 1.92, meaning that its share price is 92% 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||$651.77 million||2.56||$427.95 million||($1.83)||-7.33|
|Comp En De Mn Cemig ADS||$6.16 billion||0.58||$1.38 billion||N/A||N/A|
Comp En De Mn Cemig ADS has higher revenue and earnings than TerraForm Power.
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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