El Paso Electric (NYSE:EE) & Datang Intl Power Generation (NYSE:DIPGY) Head to Head Comparison

El Paso Electric (NYSE:EE) and Datang Intl Power Generation (OTCMKTS:DIPGY) are both mid-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings and price targets for El Paso Electric and Datang Intl Power Generation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
El Paso Electric 0 3 0 0 2.00
Datang Intl Power Generation 0 0 0 0 N/A

El Paso Electric presently has a consensus price target of $55.33, suggesting a potential downside of 19.02%. Given El Paso Electric’s higher probable upside, research analysts plainly believe El Paso Electric is more favorable than Datang Intl Power Generation.

Volatility & Risk

El Paso Electric has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Datang Intl Power Generation has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Dividends

El Paso Electric pays an annual dividend of $1.54 per share and has a dividend yield of 2.3%. Datang Intl Power Generation pays an annual dividend of $0.24 per share and has a dividend yield of 6.9%. El Paso Electric pays out 66.1% of its earnings in the form of a dividend. Datang Intl Power Generation pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. El Paso Electric has raised its dividend for 8 consecutive years.

Insider & Institutional Ownership

91.8% of El Paso Electric shares are owned by institutional investors. 1.2% of El Paso Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares El Paso Electric and Datang Intl Power Generation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
El Paso Electric $903.60 million 3.08 $84.32 million $2.33 29.33
Datang Intl Power Generation $14.11 billion 0.23 $186.19 million $0.22 15.86

Datang Intl Power Generation has higher revenue and earnings than El Paso Electric. Datang Intl Power Generation is trading at a lower price-to-earnings ratio than El Paso Electric, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares El Paso Electric and Datang Intl Power Generation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
El Paso Electric 10.99% 7.85% 2.48%
Datang Intl Power Generation N/A N/A N/A

Summary

El Paso Electric beats Datang Intl Power Generation on 12 of the 15 factors compared between the two stocks.

El Paso Electric Company Profile

El Paso Electric Co. engages in the generation, transmission, and distribution of electricity in West Texas and southern New Mexico. Its energy sources consist of nuclear fuel, natural gas, coal, wind turbines, and purchased power. The company’s electrical generating facilities include Palo Verde Station, Newman Power Station, Rio Grande Power Station, Four Corners Station, Copper Power Station, and Wind Ranch. It serves residential, commercial, industrial, public authority and wholesale customers in El Paso, Texas and Las Cruces, New Mexico. The company was founded on August 30, 1901 and is headquartered in El Paso, TX.

Datang Intl Power Generation Company Profile

Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation, and power plant development in the People's Republic of China. It operates through Power Generation, Coal, and Other segments. The company generates electricity through various sources, such as coal-fired, thermal, hydro, wind, nuclear, solar, and natural gas. As of December 31, 2017, it managed an installed capacity of approximately 48,031.175 MW. The company also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminium smelting; the production and sale of alumina; cargo shipping; the sale of coal ash and integrated application of solid wastes; the repair and testing of power equipment; and the provision of power related technical services. The company was formerly known as Beijing Datang Power Generation Co., Ltd. The company was founded in 1994 and is headquartered in Beijing, the People's Republic of China. Datang International Power Generation Co., Ltd. is a subsidiary of China Datang Corporation Limited.

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