Critical Comparison: Endesa (OTCMKTS:ELEZF) & Emera (OTCMKTS:EMRAF)

Emera (OTCMKTS:EMRAF) and Endesa (OTCMKTS:ELEZF) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Dividends

Emera pays an annual dividend of $1.45 per share and has a dividend yield of 4.0%. Endesa pays an annual dividend of $1.19 per share and has a dividend yield of 5.6%. Emera pays out 73.8% of its earnings in the form of a dividend. 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.

Profitability

This table compares Emera and Endesa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emera	N/A	N/A	N/A
Endesa	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Emera and Endesa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emera	0	0	1	0	3.00
Endesa	0	0	0	0	0.00

Emera presently has a consensus price target of $54.00, indicating a potential upside of 50.17%. Given Emera’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Emera is more favorable than Endesa.

Earnings and Valuation

This table compares Emera and Endesa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emera	N/A	N/A	N/A	$1.97	18.30
Endesa	N/A	N/A	N/A	$1.46	14.52

Endesa is trading at a lower price-to-earnings ratio than Emera, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.8% of Emera shares are held by institutional investors. Comparatively, 7.1% of Endesa shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Emera beats Endesa on 7 of the 8 factors compared between the two stocks.

About Emera

Emera Incorporated, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments. It generates electricity through natural gas, solar, hydroelectricity, coal, and biomass power plants. The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services. In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline. As of December 31, 2023, the company’s electric utilities served approximately 840,000 customers in West Central Florida; 549,000 customers in Nova Scotia; 134,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and gas utilities and infrastructure served approximately 490,000 customers across Florida and 540,000 customers in New Mexico. The company was incorporated in 1998 and is headquartered in Halifax, Canada.

About Endesa

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.