Reviewing Endesa (ELEZF) and The Competition

Insider and Institutional Ownership

7.1% of Endesa shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Electric Utilities” companies are owned by institutional investors. 6.2% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Endesa and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Endesa	N/A	N/A	31.33
Endesa Competitors	$24.68 billion	$1.54 billion	21.12

Endesa’s competitors have higher revenue and earnings than Endesa. Endesa is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Endesa pays an annual dividend of $1.19 per share and has a dividend yield of 2.6%. Endesa pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.3% and pay out 65.0% of their earnings in the form of a dividend. Endesa lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Endesa and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endesa	N/A	N/A	N/A
Endesa Competitors	13.45%	9.60%	3.12%

Summary

Endesa competitors beat Endesa on 8 of the 9 factors compared.

Endesa Company Profile

Endesa, S.A. engages in the generation, distribution, and sale of electricity in Spain, Portugal, France, Germany, Morocco, Italy, the United Kingdom, Singapore, and internationally. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. It also offers advisory services and technology relating to energy efficiency, distributed generation, and energy demand management; deploys structures for recharging electric vehicles, vehicle-to-grid, and second-life services for batteries; develops integrated services for local administrations, such as public lighting, smart city development, energy efficiency services, and solutions for connectivity; and provides energy producers with financial solutions, as well as provides engineering and construction activities for facilities related to the electricity business. As of December 31, 2023, it had an installed capacity of 21,247 MW in Spain; operates 319,136 km of distribution and transmission networks; and distributes electricity to 10,522 thousands customers and gas to 1,829 thousands customers. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. The company was incorporated in 1944 and is headquartered in Madrid, Spain. Endesa, S.A. operates as a subsidiary of Enel Iberia Srl.