Atlantica Yield (AY) vs. Dynegy (DYN) Head-To-Head Comparison

Atlantica Yield (NYSE: DYN) and Dynegy (NYSE:DYN) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Valuation & Earnings

This table compares Atlantica Yield 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
Atlantica Yield $1.01 billion 2.09 -$111.80 million ($0.18) -116.86
Dynegy $4.84 billion 0.38 $76.00 million $0.22 58.23

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

Analyst Ratings

This is a summary of recent ratings and target prices for Atlantica Yield and Dynegy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantica Yield 0 0 4 0 3.00
Dynegy 0 3 4 0 2.57

Atlantica Yield presently has a consensus target price of $25.75, suggesting a potential upside of 22.42%. Dynegy has a consensus target price of $12.85, suggesting a potential upside of 0.31%. Given Atlantica Yield’s stronger consensus rating and higher possible upside, research analysts clearly believe Atlantica Yield is more favorable than Dynegy.

Dividends

Atlantica Yield pays an annual dividend of $1.36 per share and has a dividend yield of 6.5%. Dynegy does not pay a dividend. Atlantica Yield pays out -755.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

49.5% of Atlantica Yield shares are owned by institutional investors. 1.8% of Dynegy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Atlantica Yield has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Dynegy has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Profitability

This table compares Atlantica Yield and Dynegy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantica Yield -5.50% 1.95% 0.36%
Dynegy 1.57% -11.03% -1.60%

Summary

Atlantica Yield beats Dynegy on 8 of the 15 factors compared between the two stocks.

Atlantica Yield Company Profile

Atlantica Yield plc acquires, owns, and manages renewable energy natural gas, power, electric transmission lines, and water assets in North America, South America, Spain, Algeria, and South Africa. As of December 31, 2017, it had 22 assets, including 1,446 megawatts (MW) of renewable energy generation assets comprising solar power and wind plants; 300 MW of natural gas power generation assets that produce electricity and steam from natural gas; 1,099 miles of electric transmission lines; and desalination plants with an aggregate capacity of 10.5 million cubic feet per day. The company was formerly known as Abengoa Yield plc and changed its name to Atlantica Yield plc in May 2016. Atlantica Yield plc was incorporated in 2013 and is based in Brentford, the United Kingdom.

Dynegy Company Profile

Dynegy Inc., through its subsidiaries, produces and sells electric energy, capacity, and ancillary services in the United States. It operates in five segments: PJM, NY/NE, ERCOT, MISO, and CAISO. The company sells its services on a wholesale basis from its power generation facilities. It has a fleet of 43 power plants in 12 states totaling approximately 28,000 megawatts of generating capacity. The company serves a range of customers, including regional transmission organizations, independent system operators, integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, and power marketers; financial participants, such as banks and hedge funds; and residential, commercial, and industrial end-users. Dynegy Inc. was founded in 1984 and is headquartered in Houston, Texas.

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