Analyzing Innergex Renewable Energy (OTCMKTS:INGXF) & Comp En De Mn Cemig ADS (NYSE:CIG)

Innergex Renewable Energy (OTCMKTS:INGXF) and Comp En De Mn Cemig ADS (NYSE:CIG) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Earnings and Valuation

This table compares Innergex Renewable Energy and Comp En De Mn Cemig ADS”s gross revenue, earnings per share 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
Comp En De Mn Cemig ADS	$7.38 billion	N/A	$1.32 billion	$0.20	11.78

Comp En De Mn Cemig ADS has higher revenue and earnings than Innergex Renewable Energy. Comp En De Mn Cemig ADS 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 summary of recent ratings for Innergex Renewable Energy and Comp En De Mn Cemig ADS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innergex Renewable Energy	0	0	0	0	0.00
Comp En De Mn Cemig ADS	1	1	0	0	1.50

Dividends

Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Comp En De Mn Cemig ADS pays an annual dividend of $0.17 per share and has a dividend yield of 7.2%. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Comp En De Mn Cemig ADS pays out 85.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Comp En De Mn Cemig ADS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Innergex Renewable Energy has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Innergex Renewable Energy and Comp En De Mn Cemig ADS’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%
Comp En De Mn Cemig ADS	9.45%	14.96%	6.69%

Summary

Comp En De Mn Cemig ADS beats Innergex Renewable Energy on 10 of the 11 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 Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.