Head to Head Comparison: Avista (NYSE:AVA) and Engie Brasl Ega (OTCMKTS:EGIEY)

Engie Brasl Ega (OTCMKTS:EGIEY) and Avista (NYSE:AVA) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Dividends

Engie Brasl Ega pays an annual dividend of $0.21 per share and has a dividend yield of 3.3%. Avista pays an annual dividend of $1.97 per share and has a dividend yield of 5.0%. Engie Brasl Ega pays out 52.5% of its earnings in the form of a dividend. Avista pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avista has increased its dividend for 23 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Engie Brasl Ega and Avista”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasl Ega	$2.30 billion	N/A	$462.46 million	$0.40	16.05
Avista	$1.96 billion	1.64	$193.00 million	$2.38	16.48

Engie Brasl Ega has higher revenue and earnings than Avista. Engie Brasl Ega is trading at a lower price-to-earnings ratio than Avista, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Engie Brasl Ega and Avista, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasl Ega	1	0	0	0	1.00
Avista	0	4	1	0	2.20

Avista has a consensus price target of $39.50, indicating a potential upside of 0.68%. Given Avista’s stronger consensus rating and higher possible upside, analysts clearly believe Avista is more favorable than Engie Brasl Ega.

Institutional & Insider Ownership

85.2% of Avista shares are owned by institutional investors. 0.9% of Avista 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.

Profitability

This table compares Engie Brasl Ega and Avista’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Engie Brasl Ega	20.02%	20.68%	5.09%
Avista	9.83%	7.29%	2.38%

Risk and Volatility

Engie Brasl Ega has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Avista has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Summary

Avista beats Engie Brasl Ega on 10 of the 16 factors compared between the two stocks.

About Engie Brasl Ega

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.

About Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.