Critical Review: EDP – Energias de Portugal (OTCMKTS:EDPFY) & Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and EDP – Energias de Portugal (OTCMKTS:EDPFY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Enlight Renewable Energy and EDP – Energias de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	0	1	2	0	2.67
EDP – Energias de Portugal	0	1	0	1	3.00

Enlight Renewable Energy presently has a consensus price target of $19.67, suggesting a potential upside of 8.96%. Given Enlight Renewable Energy’s higher probable upside, equities research analysts plainly believe Enlight Renewable Energy is more favorable than EDP – Energias de Portugal.

Earnings and Valuation

This table compares Enlight Renewable Energy and EDP – Energias de Portugal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$255.70 million	N/A	$70.92 million	$0.44	41.02
EDP – Energias de Portugal	$21.76 billion	0.55	$715.52 million	N/A	N/A

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

Insider & Institutional Ownership

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

Risk and Volatility

Enlight Renewable Energy has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, EDP – Energias de Portugal has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Enlight Renewable Energy and EDP – Energias de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	13.58%	3.34%	1.01%
EDP – Energias de Portugal	N/A	N/A	N/A

Summary

Enlight Renewable Energy beats EDP – Energias de Portugal on 7 of the 11 factors compared between the two stocks.

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.

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.