Analyzing ENI (NYSE:E) & RWE Aktiengesellschaft (OTCMKTS:RWEOY)

ENI (NYSE:E) and RWE Aktiengesellschaft (OTCMKTS:RWEOY) are both large-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Dividends

ENI pays an annual dividend of $1.42 per share and has a dividend yield of 4.6%. RWE Aktiengesellschaft pays an annual dividend of $0.75 per share and has a dividend yield of 2.1%. ENI pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RWE Aktiengesellschaft pays out 18.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for ENI and RWE Aktiengesellschaft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENI	0	5	3	0	2.38
RWE Aktiengesellschaft	0	0	0	1	4.00

ENI currently has a consensus price target of $31.60, indicating a potential upside of 1.36%. Given ENI’s higher probable upside, equities analysts clearly believe ENI is more favorable than RWE Aktiengesellschaft.

Insider & Institutional Ownership

1.2% of ENI shares are held by institutional investors. 0.0% of ENI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares ENI and RWE Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENI	2.76%	11.03%	4.16%
RWE Aktiengesellschaft	12.03%	8.16%	2.75%

Risk & Volatility

ENI has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, RWE Aktiengesellschaft has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares ENI and RWE Aktiengesellschaft”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENI	$88.80 billion	0.59	$5.16 billion	$1.71	18.23
RWE Aktiengesellschaft	$30.91 billion	0.76	$1.57 billion	$4.12	8.48

ENI has higher revenue and earnings than RWE Aktiengesellschaft. RWE Aktiengesellschaft is trading at a lower price-to-earnings ratio than ENI, indicating that it is currently the more affordable of the two stocks.

Summary

ENI beats RWE Aktiengesellschaft on 10 of the 17 factors compared between the two stocks.

About ENI

Eni SpA engages in the exploration, production, refining, and sale of oil, gas, electricity, and chemicals. It operates through the following segments: Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities. The Exploration and Production segment engages in research, development and production of oil, condensates and natural gas, forestry conservation (REDD+) and CO2 capture and storage projects. The Global Gas and LNG Portfolio segment refers to the supply and sale of wholesale natural gas by pipeline, international transport and purchase and marketing of LNG, which includes gas trading activities finalized to hedging and stabilizing the trade margins, as well as optimizing the gas asset portfolio. The Refining & Marketing and Chemicals segment engages in supply, processing, distribution, and marketing of fuels and chemicals. The Corporate and Other Activities segment includes the main business support functions in particular holding, central treasury, IT, human resources, real estate services, captive insurance activities, research and development, new technologies, business digitalization, and environmental activities. The company was founded on February 10, 1953 and is headquartered in Rome, Italy.

About RWE Aktiengesellschaft

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.