Enel Generación Chile (OTCMKTS:EOCCY) versus American Electric Power (NASDAQ:AEP) Critical Contrast

American Electric Power (NASDAQ:AEPGet Rating) and Enel Generación Chile (OTCMKTS:EOCCYGet Rating) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Dividends

American Electric Power pays an annual dividend of $3.12 per share and has a dividend yield of 3.1%. Enel Generación Chile pays an annual dividend of $1.75 per share and has a dividend yield of 18.6%. American Electric Power pays out 59.7% of its earnings in the form of a dividend. American Electric Power has increased its dividend for 13 consecutive years.

Profitability

This table compares American Electric Power and Enel Generación Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Electric Power 15.34% 10.65% 2.78%
Enel Generación Chile -13.90% -37.57% -20.67%

Analyst Ratings

This is a summary of current ratings and price targets for American Electric Power and Enel Generación Chile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Electric Power 0 1 7 0 2.88
Enel Generación Chile 0 0 0 0 N/A

American Electric Power presently has a consensus target price of $104.70, suggesting a potential upside of 4.93%. Given American Electric Power’s higher possible upside, equities research analysts clearly believe American Electric Power is more favorable than Enel Generación Chile.

Insider and Institutional Ownership

73.3% of American Electric Power shares are owned by institutional investors. 0.1% of American Electric Power shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Electric Power and Enel Generación Chile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Electric Power $16.80 billion 3.05 $2.49 billion $5.23 19.08
Enel Generación Chile $2.04 billion 1.26 $274.88 million N/A N/A

American Electric Power has higher revenue and earnings than Enel Generación Chile.

Volatility & Risk

American Electric Power has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Enel Generación Chile has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

American Electric Power beats Enel Generación Chile on 12 of the 15 factors compared between the two stocks.

American Electric Power Company Profile (Get Rating)

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

Enel Generación Chile Company Profile (Get Rating)

Enel Generación Chile S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2019, it had 6,114 megawatts of installed capacity with 28 generation facilities and a total of 110 generation units. The company also supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. Further it provides engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.

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