Head to Head Contrast: Pampa Energia (NYSE:PAM) versus Engie Brasl Ega (OTCMKTS:EGIEY)

Pampa Energia (NYSE:PAM) and Engie Brasl Ega (OTCMKTS:EGIEY) are both mid-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

12.8% of Pampa Energia shares are owned by institutional investors. 55.5% of Pampa Energia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Pampa Energia and Engie Brasl Ega, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pampa Energia	0	3	2	0	2.40
Engie Brasl Ega	1	0	0	0	1.00

Pampa Energia presently has a consensus target price of $105.00, indicating a potential upside of 21.10%. Given Pampa Energia’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pampa Energia is more favorable than Engie Brasl Ega.

Profitability

This table compares Pampa Energia and Engie Brasl Ega’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pampa Energia	23.58%	15.33%	8.26%
Engie Brasl Ega	29.35%	19.55%	4.97%

Valuation & Earnings

This table compares Pampa Energia and Engie Brasl Ega”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pampa Energia	$2.42 billion	1.93	$377.00 million	$10.53	8.23
Engie Brasl Ega	$2.30 billion	2.99	$462.59 million	$0.66	9.12

Engie Brasl Ega has lower revenue, but higher earnings than Pampa Energia. Pampa Energia is trading at a lower price-to-earnings ratio than Engie Brasl Ega, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Pampa Energia has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Engie Brasl Ega has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Summary

Pampa Energia beats Engie Brasl Ega on 9 of the 14 factors compared between the two stocks.

About Pampa Energia

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

About Engie Brasl Ega

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.