Enlight Renewable Energy (NASDAQ:ENLT) versus Enel (OTCMKTS:ENLAY) Financial Analysis

Enel (OTCMKTS:ENLAY) and Enlight Renewable Energy (NASDAQ:ENLT) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Enel has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Enlight Renewable Energy has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

38.9% of Enlight Renewable Energy shares are owned by institutional investors. 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.

Profitability

This table compares Enel and Enlight Renewable Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enel	N/A	N/A	N/A
Enlight Renewable Energy	18.61%	3.97%	1.25%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Enel and Enlight Renewable Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel	0	1	1	1	3.00
Enlight Renewable Energy	0	2	2	0	2.50

Enlight Renewable Energy has a consensus target price of $18.75, indicating a potential upside of 20.89%. Given Enlight Renewable Energy’s higher probable upside, analysts clearly believe Enlight Renewable Energy is more favorable than Enel.

Earnings and Valuation

This table compares Enel and Enlight Renewable Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enel	$103.42 billion	0.77	$3.72 billion	N/A	N/A
Enlight Renewable Energy	$307.24 million	5.83	$70.92 million	$0.51	30.41

Enel has higher revenue and earnings than Enlight Renewable Energy.

Summary

Enlight Renewable Energy beats Enel on 8 of the 12 factors compared between the two stocks.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.