CenterPoint Energy (NYSE:CNP) and ENGIE BRASIL EN/S (OTCMKTS:EGIEY) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Institutional and Insider Ownership
80.4% of CenterPoint Energy shares are owned by institutional investors. 0.2% of CenterPoint Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares CenterPoint Energy and ENGIE BRASIL EN/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ENGIE BRASIL EN/S||25.87%||35.26%||10.62%|
Valuation and Earnings
This table compares CenterPoint Energy and ENGIE BRASIL EN/S’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CenterPoint Energy||$10.59 billion||1.42||$368.00 million||$1.60||18.66|
|ENGIE BRASIL EN/S||$2.41 billion||3.64||$633.21 million||N/A||N/A|
ENGIE BRASIL EN/S has lower revenue, but higher earnings than CenterPoint Energy.
Volatility and Risk
CenterPoint Energy has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, ENGIE BRASIL EN/S has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
CenterPoint Energy pays an annual dividend of $1.15 per share and has a dividend yield of 3.9%. ENGIE BRASIL EN/S pays an annual dividend of $0.31 per share and has a dividend yield of 2.9%. CenterPoint Energy pays out 71.9% of its earnings in the form of a dividend. CenterPoint Energy has raised its dividend for 13 consecutive years. CenterPoint Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and target prices for CenterPoint Energy and ENGIE BRASIL EN/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ENGIE BRASIL EN/S||0||1||0||0||2.00|
CenterPoint Energy currently has a consensus target price of $31.78, indicating a potential upside of 6.45%. Given CenterPoint Energy’s stronger consensus rating and higher possible upside, analysts clearly believe CenterPoint Energy is more favorable than ENGIE BRASIL EN/S.
CenterPoint Energy beats ENGIE BRASIL EN/S on 10 of the 16 factors compared between the two stocks.
CenterPoint Energy Company Profile
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company's Electric Transmission & Distribution segment offers electric transmission and distribution services to retail electric providers, municipalities, electric cooperatives, and other distribution companies. As of December 31, 2018, it owned 235 substation sites with a total installed rated transformer capacity of 68,338 megavolt amperes; and 15 regional service centers located on a total of 332 acres of land. Its Natural Gas Distribution segment sells regulated intrastate natural gas; provides natural gas transportation and storage services for residential, commercial, industrial, and transportation customers; and offers unregulated services comprising residential appliance repair and maintenance services. As of December 31, 2018, this segment owned approximately 76,000 linear miles of natural gas distribution mains. The company's Energy Services segment provides physical natural gas supplies primarily to commercial and industrial customers, and electric and natural gas utilities; natural gas management services; and physical delivery services, as well as procures and optimizes transportation and storage assets. As of December 31, 20118, it owned and operated 200 miles of intrastate pipeline in Louisiana and Texas; and leases transportation capacity on various interstate and intrastate pipelines, and storage. Its Midstream Investment segment offers natural gas and crude oil gathering, and natural gas processing services to its producer customers; and interstate and intrastate natural gas pipeline transportation and storage services to its producer, power plant, local distribution company, and industrial end-user customers. The company was founded in 1882 and is headquartered in Houston, Texas.
ENGIE BRASIL EN/S Company Profile
Engie Brasil Energia S.A., together with its subsidiaries, generates and sells electrical energy in Brazil. It operates 31 plants, including 11 hydroelectric power plants; 7 thermal power plants, which comprise 3 coal, 3 biomass, and 1 natural gas power plants; 9 wind farms; 2 photovoltaic solar power plants; and 2 small hydroelectric plants in the states of Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Minas Gerais, Mato Grosso do Sul, Mato Grosso, Goiás, Tocantins, Maranhão, Piauí, and Ceará. As of February 23, 2018, the company had an installed capacity of 10,898.8 megawatts. It also engages in buying and selling conventional and incentivized energy. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. is a subsidiary of ENGIE Brasil Participações Ltda.
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