Korea Electric Power (KEP) versus 8Point3 Energy Partners (CAFD) Financial Survey

Korea Electric Power (NYSE:KEP) and 8Point3 Energy Partners (NASDAQ:CAFD) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Korea Electric Power and 8Point3 Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Korea Electric Power 0 3 1 0 2.25
8Point3 Energy Partners 0 7 0 0 2.00

8Point3 Energy Partners has a consensus target price of $12.50, suggesting a potential upside of 0.64%. Given 8Point3 Energy Partners’ higher probable upside, analysts plainly believe 8Point3 Energy Partners is more favorable than Korea Electric Power.

Earnings and Valuation

This table compares Korea Electric Power and 8Point3 Energy Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Korea Electric Power $55.59 billion 0.28 $1.17 billion $0.95 12.87
8Point3 Energy Partners N/A N/A N/A N/A N/A

Korea Electric Power has higher revenue and earnings than 8Point3 Energy Partners.

Profitability

This table compares Korea Electric Power and 8Point3 Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Korea Electric Power 0.67% 0.43% 0.17%
8Point3 Energy Partners N/A N/A N/A

Insider and Institutional Ownership

4.0% of Korea Electric Power shares are held by institutional investors. Comparatively, 12.7% of 8Point3 Energy Partners shares are held by institutional investors. 1.0% of Korea Electric Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Korea Electric Power pays an annual dividend of $0.29 per share and has a dividend yield of 2.4%. 8Point3 Energy Partners pays an annual dividend of $1.12 per share and has a dividend yield of 9.0%. Korea Electric Power pays out 30.5% of its earnings in the form of a dividend. 8Point3 Energy Partners has raised its dividend for 2 consecutive years. 8Point3 Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Korea Electric Power beats 8Point3 Energy Partners on 7 of the 12 factors compared between the two stocks.

About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in Korea and internationally. The company operates through Transmission and Distribution, Electric Power Generation (Nuclear), Electric Power Generation (Non-nuclear), Plant Maintenance & Engineering Service, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2017, the company had a total of 679 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,132 megawatts. Its transmission system consisted of 33,955 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 839 substations with an installed transformer capacity of 311,869 megavolt-amperes; and distribution system included 115,945 megavolt-amperes of transformer capacity and 9,287,199 units of support with a total line length of 483,467 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also offers utility plant maintenance and architectural engineering, information, communication line leasing, resources development, and fly ashes recycling services, as well as sells nuclear fuel. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju, South Korea.

About 8Point3 Energy Partners

8point3 Energy Partners LP, together with its subsidiaries, acquires, owns, and operates solar energy generation projects in the United States. It owns interests in 10 utility-scale solar energy projects; and 4 commercial and industrial solar energy projects, as well as a portfolio of residential DG solar assets. As of November 30, 2017, its portfolio consisted of interests in 946 megawatt of solar energy projects. 8point3 General Partner, LLC serves as the general partner of the company. The company was founded in 2015 and is based in San Jose, California.

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