Critical Contrast: EDP – Energias de Portugal (OTCMKTS:EDPFY) vs. Enlight Renewable Energy (NASDAQ:ENLT)

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

Analyst Recommendations

This is a breakdown of recent ratings for EDP – Energias de Portugal and Enlight Renewable Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EDP – Energias de Portugal	0	1	0	1	3.00
Enlight Renewable Energy	0	2	2	0	2.50

Enlight Renewable Energy has a consensus target price of $19.67, indicating a potential upside of 12.70%. Given Enlight Renewable Energy’s higher possible upside, analysts plainly believe Enlight Renewable Energy is more favorable than EDP – Energias de Portugal.

Volatility and Risk

EDP – Energias de Portugal has a beta of 0.73, meaning that its stock price is 27% less 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.

Valuation and Earnings

This table compares EDP – Energias de Portugal and Enlight Renewable Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EDP – Energias de Portugal	$21.76 billion	0.61	$715.52 million	N/A	N/A
Enlight Renewable Energy	$398.80 million	5.06	$70.92 million	$0.36	48.47

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EDP – Energias de Portugal	N/A	N/A	N/A
Enlight Renewable Energy	11.09%	3.03%	0.88%

Insider & Institutional Ownership

38.9% of Enlight Renewable Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Enlight Renewable Energy beats EDP – Energias de Portugal on 8 of the 12 factors compared between the two stocks.

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.

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.