Analyzing Equatorial Energia (OTCMKTS:EQUEY) and Eversource Energy (NYSE:ES)

Eversource Energy (NYSE:ES) and Equatorial Energia (OTCMKTS:EQUEY) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Valuation and Earnings

This table compares Eversource Energy and Equatorial Energia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$11.35 billion	2.11	-$442.24 million	($1.18)	-57.67
Equatorial Energia	N/A	N/A	N/A	$0.25	24.38

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

Profitability

This table compares Eversource Energy and Equatorial Energia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	-0.81%	10.34%	2.69%
Equatorial Energia	N/A	N/A	N/A

Dividends

Eversource Energy pays an annual dividend of $2.86 per share and has a dividend yield of 4.2%. Equatorial Energia pays an annual dividend of $0.07 per share and has a dividend yield of 1.2%. Eversource Energy pays out -242.4% of its earnings in the form of a dividend. Equatorial Energia pays out 29.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eversource Energy has increased its dividend for 26 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

80.0% of Eversource Energy shares are held by institutional investors. Comparatively, 0.0% of Equatorial Energia shares are held by institutional investors. 0.4% of Eversource Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Eversource Energy and Equatorial Energia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	0	8	6	0	2.43
Equatorial Energia	0	0	0	0	N/A

Eversource Energy currently has a consensus price target of $68.93, indicating a potential upside of 1.29%. Given Eversource Energy’s higher possible upside, equities analysts plainly believe Eversource Energy is more favorable than Equatorial Energia.

Summary

Eversource Energy beats Equatorial Energia on 10 of the 13 factors compared between the two stocks.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.

About Equatorial Energia

Equatorial Energia S.A., through its subsidiaries, engages in the electricity generation, distribution, transmission, and sanitation operations in Brazil. It operates through Distribution, Transmission, Wind Generation, Services, Sanitation, and Other segments. The company generates energy from wind, solar, biomass, qualified co-generation, and hydroelectric plants. It also distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; and 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers. In addition, the company distributes electric energy to 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. Equatorial Energia S.A. was founded in 1958 and is based in Brasília, Brazil.