Critical Review: Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) versus Exelon (NASDAQ:EXC)

Exelon (NASDAQ:EXC) and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Earnings & Valuation

This table compares Exelon and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exelon	$24.32 billion	1.92	$2.46 billion	$2.79	16.56
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	$2,277.66 billion	0.00	$299.34 million	$6.26	5.19

Exelon has higher earnings, but lower revenue than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor). Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) is trading at a lower price-to-earnings ratio than Exelon, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Exelon has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Exelon and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exelon	1	5	6	1	2.54
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	1	1	0	0	1.50

Exelon currently has a consensus target price of $50.55, suggesting a potential upside of 9.38%. Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) has a consensus target price of $36.00, suggesting a potential upside of 10.82%. Given Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)’s higher probable upside, analysts plainly believe Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) is more favorable than Exelon.

Institutional and Insider Ownership

80.9% of Exelon shares are owned by institutional investors. Comparatively, 1.6% of Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) shares are owned by institutional investors. 0.1% of Exelon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Exelon and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exelon	11.16%	9.85%	2.47%
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	11.55%	18.04%	6.71%

Summary

Exelon beats Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) on 8 of the 15 factors compared between the two stocks.

About Exelon

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.

About Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is involved in the distribution and sale of electricity in Argentina. The company was incorporated in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima operates as a subsidiary of Empresa de Energía del Cono Sur S.A..