Equatorial Energia (OTCMKTS:EQUEY – Get Free Report) and Comp En De Mn Cemig ADS (NYSE:CIG – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Dividends
Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.0%. Comp En De Mn Cemig ADS pays an annual dividend of $0.22 per share and has a dividend yield of 10.2%. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend. Comp En De Mn Cemig ADS pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
0.0% of Equatorial Energia shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equatorial Energia | 0 | 0 | 0 | 0 | 0.00 |
| Comp En De Mn Cemig ADS | 0 | 1 | 0 | 0 | 2.00 |
Earnings and Valuation
This table compares Equatorial Energia and Comp En De Mn Cemig ADS”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equatorial Energia | N/A | N/A | N/A | $0.25 | 30.85 |
| Comp En De Mn Cemig ADS | $43.39 billion | 0.14 | $877.05 million | $0.19 | 11.34 |
Comp En De Mn Cemig ADS has higher revenue and earnings than Equatorial Energia. Comp En De Mn Cemig ADS is trading at a lower price-to-earnings ratio than Equatorial Energia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Equatorial Energia and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equatorial Energia | N/A | N/A | N/A |
| Comp En De Mn Cemig ADS | 11.12% | 17.63% | 7.75% |
Summary
Comp En De Mn Cemig ADS beats Equatorial Energia on 6 of the 10 factors compared between the two stocks.
About Equatorial Energia
Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.
About Comp En De Mn Cemig ADS
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.
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