Analyzing Enlight Renewable Energy (NASDAQ:ENLT) & CEMIG (NYSE:CIG)

CEMIG (NYSE:CIG) and Enlight Renewable Energy (NASDAQ:ENLT) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CEMIG and Enlight Renewable Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CEMIG	0	3	0	0	2.00
Enlight Renewable Energy	0	1	2	0	2.67

Enlight Renewable Energy has a consensus price target of $19.67, suggesting a potential upside of 17.98%. Given Enlight Renewable Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Enlight Renewable Energy is more favorable than CEMIG.

Profitability

This table compares CEMIG and Enlight Renewable Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CEMIG	20.43%	20.41%	9.21%
Enlight Renewable Energy	13.58%	3.34%	1.01%

Risk & Volatility

CEMIG has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Enlight Renewable Energy has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

38.9% of Enlight Renewable Energy shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares CEMIG and Enlight Renewable Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CEMIG	$37.64 billion	0.15	$1.15 billion	$0.54	3.56
Enlight Renewable Energy	$255.70 million	7.54	$70.92 million	$0.44	37.89

CEMIG has higher revenue and earnings than Enlight Renewable Energy. CEMIG is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Enlight Renewable Energy beats CEMIG on 7 of the 13 factors compared between the two stocks.

About CEMIG

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.