Financial Survey: AES (NYSE:AES) and Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and AES (NYSE:AES) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Earnings & Valuation

This table compares Enlight Renewable Energy and AES”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$582.26 million	13.73	$132.10 million	$0.62	108.73
AES	$12.23 billion	0.87	$910.00 million	$2.62	5.70

AES has higher revenue and earnings than Enlight Renewable Energy. AES is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Enlight Renewable Energy and AES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	12.35%	3.52%	0.86%
AES	14.30%	20.69%	3.62%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Enlight Renewable Energy and AES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	2	2	4	1	2.44
AES	0	7	0	0	2.00

Enlight Renewable Energy currently has a consensus price target of $74.71, indicating a potential upside of 10.84%. AES has a consensus price target of $15.83, indicating a potential upside of 6.09%. Given Enlight Renewable Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Enlight Renewable Energy is more favorable than AES.

Institutional and Insider Ownership

38.9% of Enlight Renewable Energy shares are held by institutional investors. Comparatively, 93.1% of AES shares are held by institutional investors. 0.8% of AES shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Enlight Renewable Energy has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, AES has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

AES beats Enlight Renewable Energy on 8 of the 15 factors compared between the two stocks.

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.

About AES

The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.