Analyzing ENEVA S A/S (OTCMKTS:ENEVY) and American Electric Power (OTCMKTS:AEP)

ENEVA S A/S (OTCMKTS:ENEVY) and American Electric Power (NYSE:AEP) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares ENEVA S A/S and American Electric Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENEVA S A/S 28.38% 15.15% 7.51%
American Electric Power 12.64% 10.81% 3.00%

Earnings and Valuation

This table compares ENEVA S A/S and American Electric Power’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENEVA S A/S $856.12 million 2.15 $242.92 million N/A N/A
American Electric Power $16.20 billion 2.75 $1.92 billion $3.95 22.86

American Electric Power has higher revenue and earnings than ENEVA S A/S.

Insider & Institutional Ownership

73.6% of American Electric Power shares are held by institutional investors. 0.2% of American Electric Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ENEVA S A/S and American Electric Power, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENEVA S A/S 0 0 0 0 N/A
American Electric Power 0 8 7 0 2.47

American Electric Power has a consensus price target of $83.85, indicating a potential downside of 7.13%. Given American Electric Power’s higher possible upside, analysts clearly believe American Electric Power is more favorable than ENEVA S A/S.

Dividends

American Electric Power pays an annual dividend of $2.68 per share and has a dividend yield of 3.0%. ENEVA S A/S does not pay a dividend. American Electric Power pays out 67.8% of its earnings in the form of a dividend. American Electric Power has increased its dividend for 6 consecutive years.

Volatility & Risk

ENEVA S A/S has a beta of -29.32, suggesting that its share price is 3,032% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Summary

American Electric Power beats ENEVA S A/S on 11 of the 15 factors compared between the two stocks.

About ENEVA S A/S

Eneva S.A., together with its subsidiaries, operates as an integrated energy company in Brazil. It generates electricity through coal, natural gas, hydro, and solar energy. The company has an operational installed capacity of 2.2 GWs. It also engages in the exploration, development, and production of natural gas; and energy trading activities. The company was formerly known as MPX Energia S.A. and changed its name to Eneva S.A. in October 2013. Eneva S.A. was founded in 2001 and is headquartered in Rio de Janeiro, Brazil.

About American Electric Power

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. The company owns, leases, or controls approximately 3,664 railcars, 468 barges, 9 towboats, and a coal handling terminal with approximately 18 million tons of annual capacity. American Electric Power Company, Inc. was founded in 1906 and is headquartered in Columbus, Ohio.

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