Critical Comparison: Enel Generación Chile (OTCMKTS:EOCCY) and Evergy (NASDAQ:EVRG)

Enel Generación Chile (OTCMKTS:EOCCY) and Evergy (NASDAQ:EVRG) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Enel Generación Chile and Evergy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel Generación Chile	0	0	0	0	0.00
Evergy	0	3	8	0	2.73

Evergy has a consensus target price of $90.60, suggesting a potential upside of 11.27%. Given Evergy’s stronger consensus rating and higher possible upside, analysts clearly believe Evergy is more favorable than Enel Generación Chile.

Dividends

Enel Generación Chile pays an annual dividend of $1.75 per share and has a dividend yield of 18.6%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.4%. Evergy pays out 70.6% of its earnings in the form of a dividend. Evergy has increased its dividend for 20 consecutive years.

Institutional and Insider Ownership

87.2% of Evergy shares are owned by institutional investors. 1.5% of Evergy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Enel Generación Chile has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Evergy has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enel Generación Chile and Evergy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enel Generación Chile	$2.04 billion	1.26	$274.88 million	N/A	N/A
Evergy	$5.96 billion	3.15	$855.60 million	$3.94	20.66

Evergy has higher revenue and earnings than Enel Generación Chile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enel Generación Chile	-13.90%	-37.57%	-20.67%
Evergy	15.19%	9.20%	2.76%

Summary

Evergy beats Enel Generación Chile on 13 of the 16 factors compared between the two stocks.

About Enel Generación Chile

Enel Generación Chile S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2019, it had 6,114 megawatts of installed capacity with 28 generation facilities and a total of 110 generation units. The company also supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. Further it provides engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.