Pampa Energia (NYSE:PAM) and Fortis (NYSE:FTS) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Valuation and Earnings
This table compares Pampa Energia and Fortis’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pampa Energia||$3.05 billion||0.72||$342.46 million||$3.55||8.45|
|Fortis||$6.40 billion||2.12||$792.99 million||$1.95||16.33|
Fortis has higher revenue and earnings than Pampa Energia. Pampa Energia is trading at a lower price-to-earnings ratio than Fortis, indicating that it is currently the more affordable of the two stocks.
This table compares Pampa Energia and Fortis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Fortis pays an annual dividend of $1.30 per share and has a dividend yield of 4.1%. Pampa Energia does not pay a dividend. Fortis pays out 66.7% of its earnings in the form of a dividend.
Risk and Volatility
Pampa Energia has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Fortis has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500.
Institutional & Insider Ownership
36.1% of Pampa Energia shares are owned by institutional investors. Comparatively, 50.4% of Fortis shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Pampa Energia and Fortis, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pampa Energia currently has a consensus price target of $57.25, indicating a potential upside of 90.96%. Fortis has a consensus price target of $51.00, indicating a potential upside of 60.13%. Given Pampa Energia’s higher probable upside, analysts plainly believe Pampa Energia is more favorable than Fortis.
Fortis beats Pampa Energia on 8 of the 14 factors compared between the two stocks.
Pampa Energia Company Profile
Pampa Energía S.A., an integrated electricity company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. The company generates electricity through combined cycle gas-fired generating units, thermal generation plants, open-cycle gas turbines, and hydroelectric power generation systems, as well as through a wind farm. As of December 31, 2017, it had an electricity generation installed capacity of approximately 3,756 megawatts; 3 million electricity distribution customers in the northern region of the City of Buenos Aires and northwest of the greater Buenos Aires area; and 20,718 kilometers of high voltage transmission lines. The company is also involved in the exploration and production, and refining and distribution of oil and gas in Argentina, Venezuela, and Ecuador. In addition, it offers petrochemicals, such as intermediate gasoline products, aromatic solvents, hexane and other hydrogenated paraffinic solvents, and propellants for the cosmetic industry; and monomer styrene, and rubber and polymer products from natural gas, virgin naphtha, propane, and other supplies. As of December 31, 2017, the company had combined crude oil and natural gas proved reserves of approximately 167.1 million barrels of oil equivalent; one fully owned refinery with an installed capacity of approximately 30.2 thousand barrels per day; two storage plants with a capacity of approximately 1.2 million barrels; one lubricant plant; and three fully-owned petrochemical plants. It also operated a network of 250 gas stations. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was founded in 1945 and is headquartered in Buenos Aires, Argentina.
Fortis Company Profile
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 422,000 retail customers in southeastern Arizona; and 96,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 2,834 megawatts (MW), including 64 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 1,008,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 556,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 266,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 80,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 66,000 customers in Ontario; approximately 44,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and the Aitken Creek natural gas storage facility. It also owns and operates transmission and distribution lines; and natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.
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