Enel Chile (NYSE: ENIC) and Dynegy (NYSE:DYN) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Institutional & Insider Ownership

6.3% of Enel Chile shares are owned by institutional investors. 1.8% of Dynegy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Enel Chile pays an annual dividend of $0.17 per share and has a dividend yield of 2.8%. Dynegy does not pay a dividend. Enel Chile pays out 32.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Enel Chile N/A N/A N/A
Dynegy -0.22% -17.98% -2.46%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Enel Chile and Dynegy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Chile 2 0 0 0 1.00
Dynegy 0 4 5 0 2.56

Dynegy has a consensus price target of $13.01, indicating a potential upside of 12.94%. Given Dynegy’s stronger consensus rating and higher probable upside, analysts clearly believe Dynegy is more favorable than Enel Chile.

Valuation and Earnings

This table compares Enel Chile and Dynegy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Chile $3.30 billion 1.78 $499.40 million $0.53 11.30
Dynegy $4.32 billion 0.39 -$1.24 billion ($0.23) -50.09

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

Summary

Enel Chile beats Dynegy on 9 of the 15 factors compared between the two stocks.

About Enel Chile

Enel Chile SA is a Chile-based electricity utility company. The Company, through its combined entities and affiliates, is engaged in the generation, transmission and distribution of electricity businesses. The Company’s segments include Generation, Distribution, and Other businesses and intercompany transaction adjustments. It owns and operates electricity generation units in Chile through its subsidiaries, Empresa Nacional de Electricidad SA, Empresa Electrica Pehuenche SA, Compania Electrica Tarapaca SA and GasAtacama SA. The Company’s electricity distribution business is conducted through Chilectra Chile SA, an electricity distribution company. The Company’s combined entity, Servicios Informaticos e Inmobiliarios Ltda, is a business consultancy that provides consulting, management, administration and contract operations related to information systems, technological information, telecommunications and control systems in South America.

About Dynegy

Dynegy Inc. (Dynegy) is a holding company and conducts the business operations through its subsidiaries. The primary business of Dynegy is the production and sale of electric energy, capacity and ancillary services from the fleet of 18 operating power plants in six states totaling approximately 12,300 megawatt (MW) of generating capacity. Dynegy sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, other power generators and commercial end-users. It has three segments: Midwest segment (GEN-MW), West segment (GEN-WE) and Northeast segment (GEN-NE). Its wholly owned subsidiary is Dynegy Holdings Inc. (DHI).

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