Contrasting Innergex Renewable Energy (OTCMKTS:INGXF) and Pampa Energia (NYSE:PAM)

Innergex Renewable Energy (OTCMKTS:INGXF) and Pampa Energia (NYSE:PAM) are both mid-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Volatility & Risk

Innergex Renewable Energy has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares Innergex Renewable Energy and Pampa Energia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18
Pampa Energia	$1.88 billion	2.18	$619.00 million	$8.11	9.26

Pampa Energia has higher revenue and earnings than Innergex Renewable Energy. Pampa Energia is trading at a lower price-to-earnings ratio than Innergex Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Innergex Renewable Energy and Pampa Energia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innergex Renewable Energy	0	2	0	0	2.00
Pampa Energia	0	2	1	0	2.33

Pampa Energia has a consensus target price of $85.8333, indicating a potential upside of 14.29%. Given Pampa Energia’s stronger consensus rating and higher probable upside, analysts plainly believe Pampa Energia is more favorable than Innergex Renewable Energy.

Institutional & Insider Ownership

12.8% of Pampa Energia shares are held by institutional investors. 4.7% of Innergex Renewable Energy shares are held by insiders. Comparatively, 55.5% of Pampa Energia shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Innergex Renewable Energy and Pampa Energia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innergex Renewable Energy	5.51%	5.30%	0.76%
Pampa Energia	23.73%	13.01%	7.14%

Summary

Pampa Energia beats Innergex Renewable Energy on 12 of the 14 factors compared between the two stocks.

About Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.

About Pampa Energia

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.