Duke Energy (NYSE:DUK) vs. Enel (OTCMKTS:ENLAY) Head to Head Contrast

Duke Energy (NYSE:DUK) and Enel (OTCMKTS:ENLAY) are both large-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Dividends

Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.4%. Enel pays an annual dividend of $0.26 per share and has a dividend yield of 2.3%. Duke Energy pays out 65.2% of its earnings in the form of a dividend. Enel pays out 34.2% 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. Duke Energy has raised its dividend for 20 consecutive years. Duke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Duke Energy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Enel has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Duke Energy and Enel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duke Energy	15.49%	9.73%	2.64%
Enel	7.91%	12.66%	3.47%

Earnings & Valuation

This table compares Duke Energy and Enel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duke Energy	$32.24 billion	2.99	$4.97 billion	$6.53	18.97
Enel	$90.88 billion	1.27	$4.82 billion	$0.76	14.89

Duke Energy has higher earnings, but lower revenue than Enel. Enel is trading at a lower price-to-earnings ratio than Duke Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Duke Energy and Enel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duke Energy	0	8	9	0	2.53
Enel	2	6	1	0	1.89

Duke Energy currently has a consensus price target of $138.07, suggesting a potential upside of 11.49%. Given Duke Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Duke Energy is more favorable than Enel.

Insider and Institutional Ownership

65.3% of Duke Energy shares are held by institutional investors. 0.1% of Duke Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Duke Energy beats Enel on 12 of the 17 factors compared between the two stocks.

About Duke Energy

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.