Enel Generación Chile (OTCMKTS:EOCCY – Get Free Report) and Xcel Energy (NASDAQ:XEL – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares Enel Generación Chile and Xcel Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enel Generación Chile | -13.90% | -37.57% | -20.67% |
| Xcel Energy | 15.28% | 10.65% | 2.97% |
Insider & Institutional Ownership
78.4% of Xcel Energy shares are held by institutional investors. 0.2% of Xcel Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enel Generación Chile | $2.04 billion | 1.26 | $274.88 million | N/A | N/A |
| Xcel Energy | $14.67 billion | 3.37 | $2.02 billion | $3.65 | 21.70 |
Xcel Energy has higher revenue and earnings than Enel Generación Chile.
Risk and Volatility
Enel Generación Chile has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.
Dividends
Enel Generación Chile pays an annual dividend of $1.75 per share and has a dividend yield of 18.6%. Xcel Energy pays an annual dividend of $2.37 per share and has a dividend yield of 3.0%. Xcel Energy pays out 64.9% of its earnings in the form of a dividend. Xcel Energy has increased its dividend for 22 consecutive years.
Analyst Ratings
This is a summary of recent ratings for Enel Generación Chile and Xcel Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enel Generación Chile | 0 | 0 | 0 | 0 | 0.00 |
| Xcel Energy | 1 | 0 | 14 | 2 | 3.00 |
Xcel Energy has a consensus price target of $92.41, suggesting a potential upside of 16.67%. Given Xcel Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Xcel Energy is more favorable than Enel Generación Chile.
Summary
Xcel Energy beats Enel Generación Chile on 14 of the 17 factors compared between the two stocks.
About Enel Generación Chile
Enel Generación Chile S.A., an electric 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, 2019, it had 6,114 megawatts of installed capacity with 28 generation facilities and a total of 110 generation units. The company also supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. Further it provides 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.
About Xcel Energy
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.
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