Comparing FirstEnergy (NYSE:FE) and Empresa Distribuidora y Cmrz Nrt (NYSE:EDN)

FirstEnergy (NYSE:FE) and Empresa Distribuidora y Cmrz Nrt (NYSE:EDN) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares FirstEnergy and Empresa Distribuidora y Cmrz Nrt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstEnergy 2.79% 20.29% 3.49%
Empresa Distribuidora y Cmrz Nrt 18.09% 42.35% 15.69%

Dividends

FirstEnergy pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Empresa Distribuidora y Cmrz Nrt does not pay a dividend. FirstEnergy pays out 58.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for FirstEnergy and Empresa Distribuidora y Cmrz Nrt, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstEnergy 0 1 6 0 2.86
Empresa Distribuidora y Cmrz Nrt 2 0 0 0 1.00

FirstEnergy currently has a consensus price target of $43.86, indicating a potential downside of 2.52%. Given FirstEnergy’s stronger consensus rating and higher probable upside, research analysts clearly believe FirstEnergy is more favorable than Empresa Distribuidora y Cmrz Nrt.

Valuation & Earnings

This table compares FirstEnergy and Empresa Distribuidora y Cmrz Nrt’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstEnergy $11.26 billion 2.16 $1.35 billion $2.59 17.37
Empresa Distribuidora y Cmrz Nrt $1.99 billion 0.15 $152.56 million $3.43 1.87

FirstEnergy has higher revenue and earnings than Empresa Distribuidora y Cmrz Nrt. Empresa Distribuidora y Cmrz Nrt is trading at a lower price-to-earnings ratio than FirstEnergy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

FirstEnergy has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Empresa Distribuidora y Cmrz Nrt has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

94.4% of FirstEnergy shares are owned by institutional investors. Comparatively, 8.1% of Empresa Distribuidora y Cmrz Nrt shares are owned by institutional investors. 0.3% of FirstEnergy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

FirstEnergy beats Empresa Distribuidora y Cmrz Nrt on 10 of the 16 factors compared between the two stocks.

FirstEnergy Company Profile

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution and Regulated Transmission segments. It owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. The company also provides energy-related products and services to retail and wholesale customers. It operates 24,506 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 277,284 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits, as well as owns substations with a total installed transformer capacity of approximately 164,611,989 kilovolt-amperes. The company serves approximately six million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was founded in 1996 and is headquartered in Akron, Ohio.

Empresa Distribuidora y Cmrz Nrt Company Profile

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima, a public service company, engages in the distribution and sale of electricity in Argentina. It serves approximately 8.5 million people in the northwestern part of the greater Buenos Aires metropolitan area and the northern part of the City of Buenos Aires through the concession of 4,637 square kilometers. The company was formerly known as Empresa Distribuidora Norte Sociedad Anónima and changed its name to Empresa Distribuidora y Comercializadora Norte Sociedad Anónima in June 1996. The company was founded in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is a subsidiary of Electricidad Argentina S.A.

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