Financial Survey: Pinnacle West Capital (NYSE:PNW) vs. Endesa (OTCMKTS:ELEZY)

Pinnacle West Capital (NYSE:PNW) and Endesa (OTCMKTS:ELEZY) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

91.5% of Pinnacle West Capital shares are held by institutional investors. 0.2% of Pinnacle West Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Pinnacle West Capital and Endesa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinnacle West Capital	0	6	6	0	2.50
Endesa	0	0	0	0	N/A

Pinnacle West Capital currently has a consensus price target of $80.79, suggesting a potential downside of 7.74%. Given Pinnacle West Capital’s higher probable upside, equities analysts plainly believe Pinnacle West Capital is more favorable than Endesa.

Valuation & Earnings

This table compares Pinnacle West Capital and Endesa”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle West Capital	$4.89 billion	2.03	$501.56 million	$4.59	19.08
Endesa	N/A	N/A	N/A	$0.73	14.62

Pinnacle West Capital has higher revenue and earnings than Endesa. Endesa is trading at a lower price-to-earnings ratio than Pinnacle West Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pinnacle West Capital and Endesa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle West Capital	12.65%	9.75%	2.48%
Endesa	N/A	N/A	N/A

Dividends

Pinnacle West Capital pays an annual dividend of $3.52 per share and has a dividend yield of 4.0%. Endesa pays an annual dividend of $0.55 per share and has a dividend yield of 5.1%. Pinnacle West Capital pays out 76.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Endesa pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pinnacle West Capital has raised its dividend for 12 consecutive years. Endesa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Pinnacle West Capital beats Endesa on 11 of the 13 factors compared between the two stocks.

About Pinnacle West Capital

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.

About Endesa

Endesa, S.A. engages in the generation, distribution, and sale of electricity in Spain, Portugal, France, Germany, Morocco, Italy, the United Kingdom, Singapore, and internationally. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. It also offers advisory services and technology relating to energy efficiency, distributed generation, and energy demand management; deploys structures for recharging electric vehicles, vehicle-to-grid, and second-life services for batteries; develops integrated services for local administrations, such as public lighting, smart city development, energy efficiency services, and solutions for connectivity; and provides energy producers with financial solutions, as well as provides engineering and construction activities for facilities related to the electricity business. As of December 31, 2023, it had an installed capacity of 21,247 MW in Spain; operates 319,136 km of distribution and transmission networks; and distributes electricity to 10,522 thousands customers and gas to 1,829 thousands customers. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. The company was incorporated in 1944 and is headquartered in Madrid, Spain. Endesa, S.A. operates as a subsidiary of Enel Iberia Srl.