Critical Review: Fortis (FTS) vs. Enel Americas (NYSE:ENIA)

Enel Americas (NYSE: ENIA) and Fortis (NYSE:FTS) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Institutional & Insider Ownership

8.2% of Enel Americas shares are owned by institutional investors. Comparatively, 50.5% of Fortis shares are owned by institutional investors. 0.0% of Enel Americas shares are owned by company 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 Enel Americas and Fortis’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Americas $10.54 billion 1.02 $709.04 million N/A N/A
Fortis $6.40 billion 2.06 $792.99 million $1.95 16.02

Fortis has lower revenue, but higher earnings than Enel Americas.

Dividends

Enel Americas pays an annual dividend of $0.50 per share and has a dividend yield of 5.3%. Fortis pays an annual dividend of $1.32 per share and has a dividend yield of 4.2%. Fortis pays out 67.7% of its earnings in the form of a dividend.

Risk and Volatility

Enel Americas has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Fortis has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Enel Americas and Fortis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Americas 0 0 2 0 3.00
Fortis 0 2 3 0 2.60

Fortis has a consensus price target of $51.00, indicating a potential upside of 63.30%. Given Fortis’ higher possible upside, analysts clearly believe Fortis is more favorable than Enel Americas.

Profitability

This table compares Enel Americas and Fortis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Americas N/A N/A N/A
Fortis 12.06% 6.92% 2.23%

Summary

Fortis beats Enel Americas on 8 of the 14 factors compared between the two stocks.

About Enel Americas

Enel Américas S.A. operates as an electricity utility company. The company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina, Brazil, Colombia, and Peru. The company generates electricity from hydroelectric and thermal energy sources. As of December 31, 2016, it had 11,014 megawatts of installed capacity and 14.1 million distribution customers. The company was formerly known as Enersis Américas S.A. and changed its name to Enel Américas S.A. in December 2016. Enel Américas S.A. was founded in 1889 and is headquartered in Santiago, Chile.

About Fortis

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean. It generates, transmits, and distributes electricity to approximately 422,000 retail customers in southeastern Arizona; and 96,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 2,834 megawatts (MW), including 64 MW of solar capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 64 MW; and distributes natural gas to approximately 1,008,000 customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 556,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador serving approximately 266,000 customers with an installed generating capacity of 139 MW; and on Prince Edward Island serving approximately 80,000 customers through generating facilities with a combined capacity of 145 MW. Additionally, it provides integrated electric utility service to approximately 66,000 customers in Ontario; approximately 44,000 customers on Grand Cayman, Cayman Islands; and approximately 15,000 customers on certain islands in Turks and Caicos, as well as holds long-term contracted generation assets in British Columbia and Belize, and the Aitken Creek natural gas storage facility. It also owns and operates transmission and distribution lines; and natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.

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