Analyzing Comp En De Mn Cemig ADS (NYSE:CIG) and Duke Energy (NYSE:DUK)
by Tristan Rich · The Markets DailyDuke Energy (NYSE:DUK – Get Free Report) and Comp En De Mn Cemig ADS (NYSE:CIG – Get Free Report) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Duke Energy has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Institutional and Insider Ownership
65.3% of Duke Energy shares are held by institutional investors. 0.1% of Duke Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Duke Energy and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duke Energy | 15.78% | 9.78% | 2.67% |
| Comp En De Mn Cemig ADS | 10.44% | 16.89% | 7.28% |
Valuation and Earnings
This table compares Duke Energy and Comp En De Mn Cemig ADS”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duke Energy | $33.25 billion | 3.01 | $4.97 billion | $6.66 | 19.29 |
| Comp En De Mn Cemig ADS | $43.73 billion | 0.12 | $877.05 million | $0.19 | 9.61 |
Duke Energy has higher earnings, but lower revenue than Comp En De Mn Cemig ADS. Comp En De Mn Cemig ADS is trading at a lower price-to-earnings ratio than Duke Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
Duke Energy pays an annual dividend of $4.34 per share and has a dividend yield of 3.4%. Comp En De Mn Cemig ADS pays an annual dividend of $0.16 per share and has a dividend yield of 8.8%. Duke Energy pays out 65.2% of its earnings in the form of a dividend. Comp En De Mn Cemig ADS pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Duke Energy has raised its dividend for 20 consecutive years.
Analyst Ratings
This is a summary of current ratings and price targets for Duke Energy and Comp En De Mn Cemig ADS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duke Energy | 0 | 9 | 9 | 0 | 2.50 |
| Comp En De Mn Cemig ADS | 0 | 1 | 0 | 0 | 2.00 |
Duke Energy currently has a consensus target price of $132.19, suggesting a potential upside of 2.90%. Given Duke Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Duke Energy is more favorable than Comp En De Mn Cemig ADS.
Summary
Duke Energy beats Comp En De Mn Cemig ADS on 12 of the 17 factors compared between the two stocks.
About Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. It generates electricity through coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel. This segment also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. The GU&I segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2006. Duke Energy Corporation was founded in 1904 and is headquartered in Charlotte, North Carolina.
About Comp En De Mn Cemig ADS
Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.