EDP – Energias de Portugal (OTCMKTS:ELCPF – Get Free Report) and Public Service Enterprise Group (NYSE:PEG – 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, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Profitability
This table compares EDP – Energias de Portugal and Public Service Enterprise Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EDP – Energias de Portugal | N/A | N/A | N/A |
| Public Service Enterprise Group | 16.04% | 12.42% | 3.68% |
Valuation and Earnings
This table compares EDP – Energias de Portugal and Public Service Enterprise Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EDP – Energias de Portugal | N/A | N/A | N/A | $0.28 | 18.67 |
| Public Service Enterprise Group | $12.17 billion | 3.11 | $2.11 billion | $4.02 | 18.87 |
Public Service Enterprise Group has higher revenue and earnings than EDP – Energias de Portugal. EDP – Energias de Portugal is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for EDP – Energias de Portugal and Public Service Enterprise Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EDP – Energias de Portugal | 0 | 1 | 2 | 0 | 2.67 |
| Public Service Enterprise Group | 0 | 10 | 6 | 1 | 2.47 |
Public Service Enterprise Group has a consensus price target of $90.23, suggesting a potential upside of 18.93%. Given Public Service Enterprise Group’s higher possible upside, analysts clearly believe Public Service Enterprise Group is more favorable than EDP – Energias de Portugal.
Institutional and Insider Ownership
31.6% of EDP – Energias de Portugal shares are held by institutional investors. Comparatively, 73.3% of Public Service Enterprise Group shares are held by institutional investors. 0.2% of Public Service Enterprise Group shares are held by insiders. 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
EDP – Energias de Portugal pays an annual dividend of $0.13 per share and has a dividend yield of 2.6%. Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.5%. EDP – Energias de Portugal pays out 48.4% of its earnings in the form of a dividend. Public Service Enterprise Group pays out 66.7% 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. Public Service Enterprise Group has raised its dividend for 14 consecutive years. Public Service Enterprise Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Public Service Enterprise Group beats EDP – Energias de Portugal on 13 of the 15 factors compared between the two stocks.
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.
About Public Service Enterprise Group
Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.
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