Contrasting Pinnacle West Capital Corporation (PNW) and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (EDN)

Pinnacle West Capital Corporation (NYSE: PNW) and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Earnings and Valuation

This table compares Pinnacle West Capital Corporation and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pinnacle West Capital Corporation $3.50 billion 2.87 $442.03 million $4.63 19.39
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) $888.56 million 2.12 -$80.47 million N/A N/A

Pinnacle West Capital Corporation has higher revenue and earnings than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor).

Profitability

This table compares Pinnacle West Capital Corporation and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle West Capital Corporation 14.67% 10.31% 3.16%
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) 2.21% 103.81% 2.09%

Dividends

Pinnacle West Capital Corporation pays an annual dividend of $2.78 per share and has a dividend yield of 3.1%. Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) does not pay a dividend. Pinnacle West Capital Corporation pays out 60.0% of its earnings in the form of a dividend. Pinnacle West Capital Corporation has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

85.2% of Pinnacle West Capital Corporation shares are owned by institutional investors. Comparatively, 7.7% of Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) shares are owned by institutional investors. 0.7% of Pinnacle West Capital Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Pinnacle West Capital Corporation has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Pinnacle West Capital Corporation and Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle West Capital Corporation 1 9 0 0 1.90
Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) 0 1 0 0 2.00

Pinnacle West Capital Corporation currently has a consensus price target of $85.00, indicating a potential downside of 5.33%. Given Pinnacle West Capital Corporation’s higher probable upside, analysts clearly believe Pinnacle West Capital Corporation is more favorable than Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor).

Summary

Pinnacle West Capital Corporation beats Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) on 10 of the 14 factors compared between the two stocks.

About Pinnacle West Capital Corporation

Pinnacle West Capital Corporation is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. It owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. Its subsidiaries include Arizona Public Service Company, which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.

About Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)

Empresa Distribuidora y Comercializadora Norte S.A. is a public service company. The Company is engaged in electricity distribution in Argentina. It holds a concession to distribute electricity to the northwestern part of the greater Buenos Aires metropolitan area and in the northern part of the City of Buenos Aires. The Company’s concession area of approximately 4,637 square kilometers is divided into three operating territories: Region I, which consists of over 251 square kilometers; Region II, which consists of approximately 1,761 square kilometers, and Region III, which consists of over 2,625 square kilometers. Region I includes Ciudad de Buenos Aires, San Isidro, Vicente Lopez, San Martin and Tres de Febrero districts. Region II includes La Matanza, Moron, Hurlingham, Ituzaingo, Merlo, Marcos Paz and Gral. Las Heras districts. Region III includes Pilar, Escobar, Tigre, San Fernando, San Miguel, Malvinas Argentinas, Jose C. Paz, Moreno and Gral. Rodriguez districts.

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