Enel (OTCMKTS:ENLAY – Get Free Report) and Iberdrola (OTCMKTS:IBDRY – Get Free Report) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Enel has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Profitability
This table compares Enel and Iberdrola’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enel | N/A | N/A | N/A |
| Iberdrola | 15.59% | 9.88% | 3.80% |
Institutional and Insider Ownership
Valuation & Earnings
This table compares Enel and Iberdrola”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enel | $90.88 billion | 1.13 | $4.82 billion | $0.77 | 13.08 |
| Iberdrola | $51.52 billion | 2.99 | $7.11 billion | $4.72 | 19.56 |
Iberdrola has lower revenue, but higher earnings than Enel. Enel is trading at a lower price-to-earnings ratio than Iberdrola, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Enel and Iberdrola, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enel | 2 | 5 | 1 | 0 | 1.88 |
| Iberdrola | 1 | 6 | 2 | 0 | 2.11 |
Dividends
Enel pays an annual dividend of $0.29 per share and has a dividend yield of 2.9%. Iberdrola pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. Enel pays out 37.7% of its earnings in the form of a dividend. Iberdrola pays out 63.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Iberdrola beats Enel on 11 of the 14 factors compared between the two stocks.
About Enel
Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.
About Iberdrola
Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.
Receive News & Ratings for Enel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enel and related companies with MarketBeat.com's FREE daily email newsletter.
