Pattern Energy Group (NASDAQ:PEGI) and Enel Chile (NYSE:ENIC) are both mid-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Pattern Energy Group and Enel Chile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pattern Energy Group 28.80% 6.91% 3.09%
Enel Chile 12.03% 7.65% 4.99%

Earnings & Valuation

This table compares Pattern Energy Group and Enel Chile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pattern Energy Group $411.34 million 4.72 -$17.90 million $0.19 104.16
Enel Chile $3.79 billion 1.29 $524.07 million N/A N/A

Enel Chile has higher revenue and earnings than Pattern Energy Group.

Dividends

Pattern Energy Group pays an annual dividend of $1.69 per share and has a dividend yield of 8.5%. Enel Chile pays an annual dividend of $0.28 per share and has a dividend yield of 5.6%. Pattern Energy Group pays out 889.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pattern Energy Group has increased its dividend for 3 consecutive years. Pattern Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Pattern Energy Group and Enel Chile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pattern Energy Group 1 4 7 0 2.50
Enel Chile 1 1 0 0 1.50

Pattern Energy Group presently has a consensus price target of $22.41, suggesting a potential upside of 13.23%. Given Pattern Energy Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pattern Energy Group is more favorable than Enel Chile.

Volatility & Risk

Pattern Energy Group has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Enel Chile has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Institutional and Insider Ownership

89.9% of Pattern Energy Group shares are owned by institutional investors. Comparatively, 5.6% of Enel Chile shares are owned by institutional investors. 1.7% of Pattern Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Pattern Energy Group beats Enel Chile on 10 of the 15 factors compared between the two stocks.

About Pattern Energy Group

Pattern Energy Group Inc., an independent power company, focuses on the construction, ownership, and operation of various power projects in the United States, Canada, and Chile. It holds interests in various wind and solar power projects. The company sells electricity and renewable energy credits primarily to local utilities and local liquid independent system organizations markets. Pattern Energy Group Inc. was founded in 2012 and is headquartered in San Francisco, California.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation Business and Distribution Business segments. It transmits and distributes electricity in 33 municipalities of the Santiago metropolitan region. As of December 31, 2016, the company had 6,351 megawatts of installed capacity with 111 generation units, including 38 hydroelectric, 22 thermal, and 51 wind powered generation units. It distributed electricity to approximately 1.8 million customers, including residential, commercial, industrial, governmental, and toll customers. The company also provides consulting, management, administration, and contract operation services related to information systems, technological information, telecommunications, and control systems in South America; and develops real estate projects in Chile. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in November 2016. The company was founded in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. is a subsidiary of Enel Iberoamérica S.R.L.

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