Reviewing Endesa (OTCMKTS:ELEZY) & Enel Chile (NYSE:ENIC)

Endesa (OTCMKTS:ELEZY) and Enel Chile (NYSE:ENIC) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endesa	N/A	N/A	N/A
Enel Chile	14.69%	127.33%	47.10%

Valuation and Earnings

This table compares Endesa and Enel Chile’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endesa	N/A	N/A	N/A	$0.73	12.75
Enel Chile	$5.23 billion	0.80	$760.15 million	$0.53	5.70

Enel Chile has higher revenue and earnings than Endesa. Enel Chile is trading at a lower price-to-earnings ratio than Endesa, indicating that it is currently the more affordable of the two stocks.

Dividends

Endesa pays an annual dividend of $0.55 per share and has a dividend yield of 5.9%. Enel Chile pays an annual dividend of $0.29 per share and has a dividend yield of 9.6%. Endesa pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enel Chile pays out 54.7% of its earnings in the form of a dividend. Enel Chile is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

3.2% of Enel Chile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Endesa and Enel Chile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endesa	0	2	0	0	2.00
Enel Chile	0	1	0	0	2.00

Summary

Enel Chile beats Endesa on 7 of the 9 factors compared between the two stocks.

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.

About Enel Chile

Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).