Head to Head Review: Enel (OTCMKTS:ENLAY) versus Consolidated Edison (NYSE:ED)

Consolidated Edison (NYSE:ED) and Enel (OTCMKTS:ENLAY) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Volatility & Risk

Consolidated Edison has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Enel has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares Consolidated Edison and Enel”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consolidated Edison	$15.26 billion	2.52	$1.82 billion	$5.72	18.64
Enel	$85.44 billion	N/A	$7.59 billion	$0.67	16.40

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

Dividends

Consolidated Edison pays an annual dividend of $3.40 per share and has a dividend yield of 3.2%. Enel pays an annual dividend of $0.26 per share and has a dividend yield of 2.4%. Consolidated Edison pays out 59.4% of its earnings in the form of a dividend. Enel pays out 38.8% 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. Consolidated Edison has raised its dividend for 52 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

66.3% of Consolidated Edison shares are held by institutional investors. 0.2% of Consolidated Edison shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Consolidated Edison and Enel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consolidated Edison	12.27%	8.79%	2.89%
Enel	7.91%	12.66%	3.47%

Analyst Ratings

This is a summary of current recommendations and price targets for Consolidated Edison and Enel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consolidated Edison	5	7	3	0	1.87
Enel	2	6	1	0	1.89

Consolidated Edison currently has a consensus target price of $104.20, suggesting a potential downside of 2.28%. Given Consolidated Edison’s higher probable upside, equities analysts clearly believe Consolidated Edison is more favorable than Enel.

Summary

Consolidated Edison beats Enel on 9 of the 16 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.