Enel (OTCMKTS:ENLAY) & Iberdrola (OTCMKTS:IBDRY) Head-To-Head Survey

Iberdrola (OTCMKTS:IBDRY) and Enel (OTCMKTS:ENLAY) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

0.0% of Iberdrola shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Iberdrola and Enel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	1	4	4	0	2.33
Enel	2	3	1	0	1.83

Dividends

Iberdrola pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. Enel pays an annual dividend of $0.29 per share and has a dividend yield of 2.9%. Iberdrola pays out 63.6% of its earnings in the form of a dividend. Enel pays out 37.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iberdrola	15.59%	9.88%	3.80%
Enel	N/A	N/A	N/A

Risk and Volatility

Iberdrola has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Enel has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Iberdrola and Enel”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$51.52 billion	3.07	$7.11 billion	$4.72	20.06
Enel	$90.88 billion	1.11	$4.82 billion	$0.77	12.83

Iberdrola has higher earnings, but lower revenue than Enel. Enel is trading at a lower price-to-earnings ratio than Iberdrola, indicating that it is currently the more affordable of the two stocks.

Summary

Iberdrola beats Enel on 11 of the 14 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.