Azure Power Global (NYSE:AZRE) and El Paso Electric (NYSE:EE) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Earnings & Valuation
This table compares Azure Power Global and El Paso Electric’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Azure Power Global||$118.27 million||2.96||-$12.60 million||($0.65)||-13.20|
|El Paso Electric||$916.80 million||2.20||$98.26 million||$2.42||20.47|
El Paso Electric has higher revenue and earnings than Azure Power Global. Azure Power Global 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.
This is a breakdown of recent ratings for Azure Power Global and El Paso Electric, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Azure Power Global||0||0||4||0||3.00|
|El Paso Electric||1||2||0||0||1.67|
Azure Power Global currently has a consensus target price of $26.50, indicating a potential upside of 208.86%. El Paso Electric has a consensus target price of $52.67, indicating a potential upside of 6.31%. Given Azure Power Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Azure Power Global is more favorable than El Paso Electric.
El Paso Electric pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Azure Power Global does not pay a dividend. El Paso Electric pays out 59.5% of its earnings in the form of a dividend. El Paso Electric has raised its dividend for 7 consecutive years.
This table compares Azure Power Global and El Paso Electric’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Azure Power Global||-1.97%||-1.73%||-0.28%|
|El Paso Electric||11.67%||9.19%||2.97%|
Risk and Volatility
Azure Power Global has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, El Paso Electric has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Institutional & Insider Ownership
26.3% of Azure Power Global shares are held by institutional investors. Comparatively, 97.6% of El Paso Electric shares are held by institutional investors. 1.3% of El Paso Electric shares are held by company 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.
El Paso Electric beats Azure Power Global on 11 of the 17 factors compared between the two stocks.
About Azure Power Global
Azure Power Global Limited, together with its subsidiaries, engages in the development, construction, ownership, operation, maintenance, and management of solar power plants in India. It generates solar energy based on long-term contracts with Indian government energy distribution companies, as well as other non-governmental energy distribution companies and commercial customers. As of March 31, 2018, the company had a portfolio capacity of approximately 1,871 megawatts. Azure Power Global Limited was founded in 2007 and is based in New Delhi, India.
About El Paso Electric
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity in west Texas and southern New Mexico. It generates electricity through nuclear fuel, natural gas, and coal, as well as solar photovoltaic panels and wind turbines with a generating capability of approximately 2,082 megawatts. The company also sources electricity from purchased power. The company owns and has ownership interests in four 345 kilovolt (kv) transmission lines in New Mexico and Arizona; and three 500 kV lines in Arizona. It serves approximately 417,900 residential, commercial, and public authority customers; and distributes electricity to retail customers. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
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