CEMIG (NYSE:CIG) and ENEVA S A/S (OTCMKTS:ENEVY) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Dividends

CEMIG pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. ENEVA S A/S does not pay a dividend. CEMIG pays out 11.5% of its earnings in the form of a dividend. CEMIG has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares CEMIG and ENEVA S A/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEMIG $6.80 billion 0.68 $313.51 million $0.26 14.19
ENEVA S A/S $852.46 million 1.77 $29.90 million N/A N/A

CEMIG has higher revenue and earnings than ENEVA S A/S.

Insider and Institutional Ownership

2.9% of CEMIG shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CEMIG and ENEVA S A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEMIG 4.26% 6.47% 2.21%
ENEVA S A/S 15.05% 8.86% 4.35%

Analyst Recommendations

This is a summary of current ratings for CEMIG and ENEVA S A/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEMIG 2 3 1 0 1.83
ENEVA S A/S 0 0 0 0 N/A

Risk & Volatility

CEMIG has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, ENEVA S A/S has a beta of -33.98, meaning that its share price is 3,498% less volatile than the S&P 500.

Summary

CEMIG beats ENEVA S A/S on 8 of the 13 factors compared between the two stocks.

About CEMIG

Companhia Energ├ętica 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.

About ENEVA S A/S

Eneva S.A., together with its subsidiaries, operates as an integrated energy company in Brazil. It generates electricity through coal, natural gas, hydro, and solar energy. The company has an operational installed capacity of 2.2 GWs. It also engages in the exploration, development, and production of natural gas; and energy trading activities. The company was formerly known as MPX Energia S.A. and changed its name to Eneva S.A. in October 2013. Eneva S.A. was founded in 2001 and is headquartered in Rio de Janeiro, Brazil.

Receive News & Ratings for CEMIG Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CEMIG and related companies with MarketBeat.com's FREE daily email newsletter.