Comp En De Mn Cemig ADS (NYSE:CIG) & Duke Energy (NYSE:DUK) Head to Head Contrast

Comp En De Mn Cemig ADS (NYSE:CIG) and Duke Energy (NYSE:DUK) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares Comp En De Mn Cemig ADS and Duke Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comp En De Mn Cemig ADS	$7.38 billion	0.78	$1.32 billion	$0.46	4.39
Duke Energy	$30.36 billion	3.08	$4.52 billion	$6.15	19.58

Duke Energy has higher revenue and earnings than Comp En De Mn Cemig ADS. Comp En De Mn Cemig ADS is trading at a lower price-to-earnings ratio than Duke Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Comp En De Mn Cemig ADS and Duke Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comp En De Mn Cemig ADS	1	3	0	0	1.75
Duke Energy	0	5	9	0	2.64

Duke Energy has a consensus price target of $130.62, indicating a potential upside of 8.49%. Given Duke Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Duke Energy is more favorable than Comp En De Mn Cemig ADS.

Institutional and Insider Ownership

65.3% of Duke Energy shares are owned by institutional investors. 0.1% of Duke Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Comp En De Mn Cemig ADS and Duke Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comp En De Mn Cemig ADS	15.68%	16.30%	7.29%
Duke Energy	15.51%	9.85%	2.65%

Volatility and Risk

Comp En De Mn Cemig ADS has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Duke Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Dividends

Comp En De Mn Cemig ADS pays an annual dividend of $0.13 per share and has a dividend yield of 6.4%. Duke Energy pays an annual dividend of $4.26 per share and has a dividend yield of 3.5%. Comp En De Mn Cemig ADS pays out 28.3% of its earnings in the form of a dividend. Duke Energy pays out 69.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Duke Energy has increased its dividend for 20 consecutive years. Comp En De Mn Cemig ADS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Duke Energy beats Comp En De Mn Cemig ADS on 11 of the 17 factors compared between the two stocks.

About Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

About Duke Energy

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.