Enel Chile (NYSE: ENIC) and Avangrid (NYSE:AGR) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

How to Become a New Pot Stock Millionaire

6.3% of Enel Chile shares are owned by institutional investors. Comparatively, 14.3% of Avangrid shares are owned by institutional investors. 0.3% of Avangrid shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Enel Chile has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Avangrid has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Earnings & Valuation

This table compares Enel Chile and Avangrid’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Chile $3.79 billion 1.67 $524.07 million N/A N/A
Avangrid $5.96 billion 2.67 $381.00 million $2.20 23.40

Enel Chile has higher earnings, but lower revenue than Avangrid.

Analyst Ratings

This is a summary of recent recommendations for Enel Chile and Avangrid, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Chile 2 0 0 0 1.00
Avangrid 1 1 6 0 2.63

Avangrid has a consensus target price of $51.75, indicating a potential upside of 0.50%. Given Avangrid’s stronger consensus rating and higher possible upside, analysts clearly believe Avangrid is more favorable than Enel Chile.

Profitability

This table compares Enel Chile and Avangrid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Chile 13.81% 18.58% 12.73%
Avangrid 6.39% 4.48% 2.16%

Dividends

Enel Chile pays an annual dividend of $0.17 per share and has a dividend yield of 2.6%. Avangrid pays an annual dividend of $1.73 per share and has a dividend yield of 3.4%. Avangrid pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Avangrid beats Enel Chile on 9 of the 14 factors compared between the two stocks.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company also provides consulting, management, administration, and contract operation services related to information systems, technological information, telecommunications, and control systems in South America; and develops real estate projects in Chile. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.

About Avangrid

Avangrid, Inc. operates as an energy services holding company in the United States. It engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. As of December 31, 2017, the company delivered electricity to approximately 2.2 million electric utility customers, as well as natural gas to approximately 1 million natural gas public utility customers; and owned approximately 67.5 billion cubic feet of net working gas storage capacity. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. It also generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. The company was formerly known as Iberdrola USA, Inc. Avangrid, Inc. was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Receive News & Ratings for Enel Chile Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enel Chile and related companies with MarketBeat.com's FREE daily email newsletter.