Head to Head Analysis: NiSource (NYSE:NI) versus Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN)

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) and NiSource (NYSE:NI) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) and NiSource”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	$2.24 billion	0.64	$299.34 million	$4.18	7.56
NiSource	$5.46 billion	3.59	$760.40 million	$1.89	21.69

NiSource has higher revenue and earnings than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor). Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) and NiSource, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	0	2	0	0	2.00
NiSource	0	2	8	1	2.91

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) presently has a consensus price target of $36.00, suggesting a potential upside of 13.85%. NiSource has a consensus price target of $46.67, suggesting a potential upside of 13.86%. Given NiSource’s stronger consensus rating and higher possible upside, analysts plainly believe NiSource is more favorable than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor).

Insider and Institutional Ownership

1.6% of Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) shares are held by institutional investors. Comparatively, 91.6% of NiSource shares are held by institutional investors. 0.2% of NiSource shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, NiSource has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) and NiSource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)	7.82%	11.33%	4.42%
NiSource	14.15%	8.09%	2.66%

Summary

NiSource beats Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) on 11 of the 15 factors compared between the two stocks.

About Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is involved in the distribution and sale of electricity in Argentina. The company was incorporated in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima operates as a subsidiary of Empresa de Energía del Cono Sur S.A..

About NiSource

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.