Otter Tail (NASDAQ:OTTR) and Empresa Distribuidora y Cmrz Nrt (NASDAQ:EDN) Financial Analysis

Otter Tail (NASDAQ:OTTR) and Empresa Distribuidora y Cmrz Nrt (NYSE:EDN) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Dividends

Otter Tail pays an annual dividend of $1.40 per share and has a dividend yield of 2.6%. Empresa Distribuidora y Cmrz Nrt does not pay a dividend. Otter Tail pays out 68.0% of its earnings in the form of a dividend. Otter Tail has raised its dividend for 5 consecutive years.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Otter Tail 0 0 1 0 3.00
Empresa Distribuidora y Cmrz Nrt 1 0 0 0 1.00

Otter Tail currently has a consensus price target of $60.00, indicating a potential upside of 11.86%. Given Otter Tail’s stronger consensus rating and higher possible upside, research analysts plainly believe Otter Tail is more favorable than Empresa Distribuidora y Cmrz Nrt.

Risk and Volatility

Otter Tail has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Empresa Distribuidora y Cmrz Nrt has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

44.0% of Otter Tail shares are held by institutional investors. Comparatively, 8.0% of Empresa Distribuidora y Cmrz Nrt shares are held by institutional investors. 1.7% of Otter Tail shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Otter Tail 8.57% 10.78% 3.82%
Empresa Distribuidora y Cmrz Nrt 18.09% 42.35% 15.69%

Valuation & Earnings

This table compares Otter Tail 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
Otter Tail $916.45 million 2.33 $82.35 million $2.06 26.04
Empresa Distribuidora y Cmrz Nrt $1.99 billion 0.17 $152.56 million $3.43 2.19

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

Summary

Otter Tail beats Empresa Distribuidora y Cmrz Nrt on 9 of the 17 factors compared between the two stocks.

Otter Tail Company Profile

Otter Tail Corporation, together with its subsidiaries, engages in electric, manufacturing, and plastics businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas and oil sources. It serves approximately 130,000 residential, commercial, industrial, and other customers. Otter Tail Corporation's Manufacturing segment stamps, fabricates, welds, paints, and laser cuts metal components for use in the recreational vehicle, agricultural, oil and gas, lawn and garden, industrial equipment, health and fitness, and enclosure industries; manufactures and fabricates parts for off-road equipment, mining machinery, oil fields and offshore oil rigs, wind industry components, broadcast antennae, and farm equipment; and provides laser cutting services and stamping to weldments and assemblies for metal fabrication buyers and original equipment manufacturers. It also manufactures and sells thermoformed products for the horticulture industry; and clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the medical and life sciences, industrial, recreation, and electronics industries. The company's Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage system, and other uses. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

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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