Avangrid (NYSE:AGR) and EDP-Energias de Portugal, S.A (OTCMKTS:EDPFY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Avangrid and EDP-Energias de Portugal, S.A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avangrid 8.85% 4.09% 1.95%
EDP-Energias de Portugal, S.A 2.29% 5.45% 1.69%

Earnings & Valuation

This table compares Avangrid and EDP-Energias de Portugal, S.A’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avangrid $6.48 billion 2.38 $595.00 million $2.21 22.60
EDP-Energias de Portugal, S.A $18.04 billion 0.77 $613.16 million N/A N/A

EDP-Energias de Portugal, S.A has higher revenue and earnings than Avangrid.

Dividends

Avangrid pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. EDP-Energias de Portugal, S.A pays an annual dividend of $1.36 per share and has a dividend yield of 3.6%. Avangrid pays out 79.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avangrid has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Avangrid and EDP-Energias de Portugal, S.A, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avangrid 2 5 0 0 1.71
EDP-Energias de Portugal, S.A 0 0 0 0 N/A

Avangrid presently has a consensus price target of $50.83, indicating a potential upside of 1.79%. Given Avangrid’s higher possible upside, research analysts clearly believe Avangrid is more favorable than EDP-Energias de Portugal, S.A.

Volatility and Risk

Avangrid has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, EDP-Energias de Portugal, S.A has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

14.1% of Avangrid shares are owned by institutional investors. Comparatively, 0.1% of EDP-Energias de Portugal, S.A shares are owned by institutional investors. 0.4% of Avangrid shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Avangrid

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

About EDP-Energias de Portugal, S.A

EDP – Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Generation and Supply in Iberia, Regulated Networks in Iberia, EDP Renov├íveis, and EDP Brasil segments. The company primarily generates electricity through hydro, CCGT, coal, mini-hydro, wind, solar, nuclear, and cogeneration sources. It also distributes and supplies gas. The company has an installed capacity of 27 GW; and serves 9,848,384 electricity customers and 1,595,347 gas customers. It also operates 285,121 kilometers of distribution overhead lines; and 54,056 kilometers of distribution underground lines. In addition, the company offers engineering, laboratory tests, professional training, energy, and property management services. EDP – Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal.

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