Brookfield Infrastructure Partners (NYSE:BIP – Get Free Report) and EDP – Energias de Portugal (OTCMKTS:ELCPF – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Earnings & Valuation
This table compares Brookfield Infrastructure Partners and EDP – Energias de Portugal”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Infrastructure Partners | $23.10 billion | 0.78 | $771.00 million | $0.62 | 62.99 |
| EDP – Energias de Portugal | N/A | N/A | N/A | $0.28 | 18.35 |
Profitability
This table compares Brookfield Infrastructure Partners and EDP – Energias de Portugal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Infrastructure Partners | 3.51% | 2.63% | 0.71% |
| EDP – Energias de Portugal | N/A | N/A | N/A |
Institutional & Insider Ownership
57.9% of Brookfield Infrastructure Partners shares are held by institutional investors. Comparatively, 31.6% of EDP – Energias de Portugal shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Brookfield Infrastructure Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.7%. EDP – Energias de Portugal pays an annual dividend of $0.13 per share and has a dividend yield of 2.6%. Brookfield Infrastructure Partners pays out 293.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EDP – Energias de Portugal pays out 48.4% of its earnings in the form of a dividend. Brookfield Infrastructure Partners has increased its dividend for 18 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Brookfield Infrastructure Partners and EDP – Energias de Portugal, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Infrastructure Partners | 0 | 3 | 8 | 0 | 2.73 |
| EDP – Energias de Portugal | 0 | 1 | 1 | 0 | 2.50 |
Brookfield Infrastructure Partners presently has a consensus price target of $45.11, indicating a potential upside of 15.51%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher possible upside, research analysts clearly believe Brookfield Infrastructure Partners is more favorable than EDP – Energias de Portugal.
Summary
Brookfield Infrastructure Partners beats EDP – Energias de Portugal on 12 of the 13 factors compared between the two stocks.
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.
About EDP – Energias de Portugal
EDP – Energias de Portugal, S.A. engages in the generation, transmission, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Italy, Belgium, the United Kingdom, Greece, Colombia, Brazil, North America, and internationally. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates and sells electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration and waste sources. It has an installed capacity of 28 GW; and operates 380,788 kilometers of distribution network lines. The company is also involved in the supply of natural gas. In addition, it offers engineering, laboratory tests, professional training, and energy services, as well as property management services. The company's electricity and gas customers include domestic, industrial, commercial, agricultural, and others. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.
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