Enel S.p.A. ADS (OTCMKTS:ENLAY) and Huaneng Power International (NYSE:HNP) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Volatility & Risk

Enel S.p.A. ADS has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Huaneng Power International has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Enel S.p.A. ADS and Huaneng Power International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel S.p.A. ADS 5.52% 8.62% 2.61%
Huaneng Power International 0.12% 0.15% 0.04%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Enel S.p.A. ADS and Huaneng Power International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel S.p.A. ADS 1 1 2 0 2.25
Huaneng Power International 0 3 1 0 2.25

Earnings & Valuation

This table compares Enel S.p.A. ADS and Huaneng Power International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel S.p.A. ADS $84.31 billion 0.74 $4.27 billion N/A N/A
Huaneng Power International $22.56 billion 0.41 $233.81 million $0.40 60.95

Enel S.p.A. ADS has higher revenue and earnings than Huaneng Power International.

Institutional & Insider Ownership

0.1% of Enel S.p.A. ADS shares are held by institutional investors. Comparatively, 0.3% of Huaneng Power International shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Enel S.p.A. ADS pays an annual dividend of $0.18 per share and has a dividend yield of 2.9%. Huaneng Power International pays an annual dividend of $0.53 per share and has a dividend yield of 2.2%. Huaneng Power International pays out 132.5% 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

Enel S.p.A. ADS beats Huaneng Power International on 9 of the 12 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 Huaneng Power International

Huaneng Power International, Inc., through its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People's Republic of China and Singapore. It is involved in the development, investment, construction, operation, and management of power plants and related projects; and generation, wholesale, and retail of power and other relating utilities. The company generates power from coal, wind, gas, oil, biomass, solar, and hydro resources. It is also involved in the sale of coal ash and lime; provision of loading warehousing and conveying services; photovoltaic power generation projects development and construction; and provision of thermal energy and cold energy services, as well as thermal heating services. In addition, the company engages in the repair of power equipment; provision of water supply and transportation services; construction and operation of electricity distribution networks and heating pipe networks; power supply, energy transmission, and substation project contracting activities; cargo transportation along domestic coastal areas; port management, investment, and development activities; and port provision, and cargo loading and storage activities. Further, it is involved in the aquaculture and agriculture irrigation activities, as well as provides environment engineering, waste recycling consultancy, and industrial waste management and recycling services. Additionally, it sells raw and processed coal; and provides central heat, and plumbing and pipe installation services, as well as desalinated water. As of March 31, 2018, the company had controlled generating capacity of 104,301 megawatts and a total generating capacity of 91,783 megawatts. Huaneng Power International, Inc. was founded in 1994 and is headquartered in Beijing, the People's Republic of China.

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