Financial Analysis: EDP – Energias de Portugal (OTCMKTS:EDPFY) vs. Hallador Energy (NASDAQ:HNRG)

EDP – Energias de Portugal (OTCMKTS:EDPFY) and Hallador Energy (NASDAQ:HNRG) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares EDP – Energias de Portugal and Hallador Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EDP – Energias de Portugal	$21.76 billion	0.62	$715.52 million	N/A	N/A
Hallador Energy	$429.36 million	1.19	$44.79 million	($0.55)	-21.73

EDP – Energias de Portugal has higher revenue and earnings than Hallador Energy.

Profitability

This table compares EDP – Energias de Portugal and Hallador Energy’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
Hallador Energy	-4.85%	-6.71%	-3.39%

Volatility & Risk

EDP – Energias de Portugal has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Hallador Energy has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for EDP – Energias de Portugal and Hallador Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EDP – Energias de Portugal	0	1	0	1	3.00
Hallador Energy	0	0	2	0	3.00

Hallador Energy has a consensus price target of $15.00, suggesting a potential upside of 25.52%. Given Hallador Energy’s higher probable upside, analysts clearly believe Hallador Energy is more favorable than EDP – Energias de Portugal.

Dividends

EDP – Energias de Portugal pays an annual dividend of $1.31 per share and has a dividend yield of 3.8%. Hallador Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. Hallador Energy pays out -29.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

61.4% of Hallador Energy shares are owned by institutional investors. 32.3% of Hallador Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

EDP – Energias de Portugal beats Hallador Energy on 8 of the 14 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 Hallador Energy

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.