Financial Comparison: Enel Chile (NYSE:ENIC) & United Utilities Group (OTCMKTS:UUGRY)

Enel Chile (NYSE:ENIC) and United Utilities Group (OTCMKTS:UUGRY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Enel Chile has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, United Utilities Group has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

3.2% of Enel Chile shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Enel Chile and United Utilities Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel Chile	0	3	0	0	2.00
United Utilities Group	0	3	1	2	2.83

Enel Chile currently has a consensus target price of $3.90, indicating a potential upside of 1.69%. Given Enel Chile’s higher possible upside, equities analysts clearly believe Enel Chile is more favorable than United Utilities Group.

Profitability

This table compares Enel Chile and United Utilities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enel Chile	3.50%	2.53%	1.07%
United Utilities Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Enel Chile and United Utilities Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enel Chile	$3.73 billion	1.42	$159.62 million	$0.11	34.86
United Utilities Group	$2.70 billion	N/A	$337.73 million	N/A	N/A

United Utilities Group has lower revenue, but higher earnings than Enel Chile.

Dividends

Enel Chile pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. United Utilities Group pays an annual dividend of $1.68 per share and has a dividend yield of 5.2%. Enel Chile pays out 9.1% of its earnings in the form of a dividend.

Summary

Enel Chile beats United Utilities Group on 7 of the 13 factors compared between the two stocks.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).

About United Utilities Group

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.