Comparing Enel Chile (NYSE:ENIC) and Engie Brasl Ega (OTCMKTS:EGIEY)

Engie Brasl Ega (OTCMKTS:EGIEY) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Engie Brasl Ega	29.35%	19.55%	4.97%
Enel Chile	12.52%	10.28%	4.59%

Volatility and Risk

Engie Brasl Ega has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Dividends

Engie Brasl Ega pays an annual dividend of $0.15 per share and has a dividend yield of 3.1%. Enel Chile pays an annual dividend of $0.26 per share and has a dividend yield of 6.2%. Engie Brasl Ega pays out 22.7% of its earnings in the form of a dividend. Enel Chile pays out 60.5% 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.

Valuation & Earnings

This table compares Engie Brasl Ega and Enel Chile”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasl Ega	$2.30 billion	2.39	$462.59 million	$0.66	7.30
Enel Chile	$4.66 billion	1.25	$537.63 million	$0.43	9.80

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

Insider and Institutional Ownership

3.2% of Enel Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Engie Brasl Ega and Enel Chile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasl Ega	0	1	0	0	2.00
Enel Chile	0	5	1	1	2.43

Enel Chile has a consensus price target of $4.65, indicating a potential upside of 10.32%. Given Enel Chile’s stronger consensus rating and higher probable upside, analysts plainly believe Enel Chile is more favorable than Engie Brasl Ega.

Summary

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

About Engie Brasl Ega

ENGIE Brasil Energia S.A. is a Brazilian electric power company that develops and operates power-generation facilities and sells electricity to customers and energy markets. Its portfolio includes renewable sources such as hydropower, wind, solar and biomass, as well as thermal generation. Based in Brazil, the company serves customers across the country and participates in electricity commercialization and related energy activities. It was formerly known as Tractebel Energia and adopted the ENGIE Brasil Energia name in 2016.

About Enel Chile

Enel Chile S.A. is an electricity company and part of the global Enel Group. Based in Chile, it generates and distributes electricity through subsidiaries including Enel Generación Chile and Enel Distribución Chile. The company’s generation portfolio includes hydroelectric, solar, wind and thermal power plants. It also supplies electricity to customers, with its distribution business focused primarily on Santiago and surrounding areas. Enel Chile was established in 2016 as part of a reorganization of the Enersis group’s businesses in Latin America.