Equatorial Energia (OTCMKTS:EQUEY – Get Free Report) and Eversource Energy (NYSE:ES – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Equatorial Energia and Eversource Energy, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Equatorial Energia | 0 | 0 | 0 | 0 | N/A |
Eversource Energy | 0 | 8 | 6 | 0 | 2.43 |
Eversource Energy has a consensus price target of $68.93, indicating a potential upside of 3.62%. Given Eversource Energy’s higher possible upside, analysts plainly believe Eversource Energy is more favorable than Equatorial Energia.
Dividends
Institutional and Insider Ownership
0.0% of Equatorial Energia shares are held by institutional investors. Comparatively, 80.0% of Eversource Energy shares are held by institutional investors. 0.4% of Eversource Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Equatorial Energia and Eversource Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Equatorial Energia | N/A | N/A | N/A |
Eversource Energy | -0.81% | 10.34% | 2.69% |
Valuation & Earnings
This table compares Equatorial Energia and Eversource Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Equatorial Energia | N/A | N/A | N/A | $0.25 | 24.00 |
Eversource Energy | $11.35 billion | 2.06 | -$442.24 million | ($1.18) | -56.37 |
Equatorial Energia has higher earnings, but lower revenue than Eversource Energy. Eversource Energy is trading at a lower price-to-earnings ratio than Equatorial Energia, indicating that it is currently the more affordable of the two stocks.
Summary
Eversource Energy beats Equatorial Energia on 10 of the 13 factors compared between the two stocks.
About Equatorial Energia
Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
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