Analyzing Enel Generacion Chile (NYSE:EOCC) and Fortis (NYSE:FTS)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Fortis and Enel Generacion Chile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortis 1 5 3 0 2.22
Enel Generacion Chile 0 0 0 0 N/A

Fortis currently has a consensus price target of $53.00, indicating a potential upside of 30.13%.

Earnings & Valuation

This table compares Fortis and Enel Generacion Chile’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortis $6.44 billion 2.76 $899.56 million $1.91 21.32
Enel Generacion Chile $2.45 billion 0.00 N/A N/A N/A

Fortis has higher revenue and earnings than Enel Generacion Chile.

Profitability

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

Net Margins Return on Equity Return on Assets
Fortis 12.72% 6.80% 2.19%
Enel Generacion Chile 21.20% 24.58% 13.82%

Risk & Volatility

Fortis has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Enel Generacion Chile has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

51.7% of Fortis shares are held by institutional investors. Comparatively, 0.4% of Enel Generacion Chile shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Fortis pays an annual dividend of $1.34 per share and has a dividend yield of 3.3%. Enel Generacion Chile pays an annual dividend of $1.93 per share. Fortis pays out 70.2% of its earnings in the form of a dividend. Fortis has raised its dividend for 2 consecutive years and Enel Generacion Chile has raised its dividend for 2 consecutive years.

About Fortis

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 425,000 retail customers in southeastern Arizona; and 97,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,377 MW (MW), including 57 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 1,030,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 564,000 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 268,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 81,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 176,000 customers in British Columbia; approximately 268,000 customers in Newfoundland and Labrador; approximately 30,000 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.

About Enel Generacion Chile

Enel Generación Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2017, it had 6,351 megawatts of installed capacity with 28 generation facilities and a total of 111 generation units. The company supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. It is also involved in exploitation and transportation of natural gas; and provision of engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.

Receive News & Ratings for Fortis Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fortis and related companies with MarketBeat.com's FREE daily email newsletter.