Comparing Korea Electric Power (KEP) and Atlantica Yield (AY)

Atlantica Yield (NASDAQ: AY) and Korea Electric Power (NYSE:KEP) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Profitability

This table compares Atlantica Yield and Korea Electric Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantica Yield 2.85% 1.41% 0.27%
Korea Electric Power 5.15% 4.19% 1.72%

Volatility & Risk

Atlantica Yield has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Korea Electric Power has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

51.0% of Atlantica Yield shares are owned by institutional investors. Comparatively, 4.7% of Korea Electric Power shares are owned by institutional investors. 1.0% of Korea Electric Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Atlantica Yield and Korea Electric Power, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantica Yield 0 1 3 0 2.75
Korea Electric Power 1 4 2 0 2.14

Atlantica Yield currently has a consensus target price of $23.75, suggesting a potential upside of 12.35%. Given Atlantica Yield’s stronger consensus rating and higher probable upside, analysts plainly believe Atlantica Yield is more favorable than Korea Electric Power.

Dividends

Atlantica Yield pays an annual dividend of $1.16 per share and has a dividend yield of 5.5%. Korea Electric Power does not pay a dividend. Atlantica Yield pays out 429.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Atlantica Yield and Korea Electric Power’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantica Yield $971.80 million 2.18 -$4.85 million $0.27 78.30
Korea Electric Power $51.76 billion 0.44 $6.34 billion $2.16 8.25

Korea Electric Power has higher revenue and earnings than Atlantica Yield. Korea Electric Power is trading at a lower price-to-earnings ratio than Atlantica Yield, indicating that it is currently the more affordable of the two stocks.

About Atlantica Yield

Atlantica Yield plc, formerly Abengoa Yield plc, is a total return company. The Company owns, manages, and acquires renewable energy, conventional power, electric transmission lines and water assets, focused on North America (the United States and Mexico), South America (Peru, Chile, Brazil and Uruguay) and Europe, Middle East and Africa (Spain, Algeria and South Africa). Its segments include North America, South America and EMEA. It operates in business sectors, including renewable energy, conventional power, electric transmission lines and water. As of December 31, 2016, it owned or had interests in 21 assets, comprising 1,442 megawatt (MW) of renewable energy generation, 300 MW of conventional power generation, 1,099 miles of electric transmission lines, as well as an exchangeable preferred equity investment in Abengoa Concessoes Brasil Holding S.A., (ACBH). The renewable energy sector includes its activities related to the production electricity from solar power and wind plants.

About Korea Electric Power

Korea Electric Power Corporation (KEPCO) is an integrated electric utility company engaged in the transmission and distribution of electricity in the Republic of Korea. Its segments include transmission and distribution, nuclear power generation and thermal power generation and all others . The transmission and distribution segment, which is operated by KEPCO, comprise operations related to the transmission, distribution and sale to end-users of electricity. The nuclear power generation segment, which is engaged in the nuclear, hydro, pumping-up power generation. The thermal power generation segment, which is engaged in bituminous coal, anthracite, liquefied natural gas (LNG) power generation. And the Other Segment comprises operations related to the plant design, power generation equipment assembly, nuclear raw materials supplement, electricity IT service, renewable source power generation and financial investment on overseas businesses.

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