EDP - Energias de Portugal vs Endesa Which Is More Favorable?

EDP - Energias de Portugal and Endesa are two major players in the energy sector, both operating in the European market. EDP, based in Portugal, is one of the largest energy companies in the world, with a diversified portfolio of electricity generation, distribution, and commercialization. Endesa, based in Spain, is also a significant player in the energy industry, specializing in electricity and gas generation and distribution. Both stocks are influenced by global energy trends, regulatory changes, and market demand. Investors should consider the financial health, strategic direction, and competitive positioning of each company when evaluating their investment potential.

EDP - Energias de Portugal or Endesa?

When comparing EDP - Energias de Portugal and Endesa, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between EDP - Energias de Portugal and Endesa.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. EDP - Energias de Portugal has a dividend yield of 3.41%, while Endesa has a dividend yield of 5.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EDP - Energias de Portugal reports a 5-year dividend growth of -4.14% year and a payout ratio of 64.43%. On the other hand, Endesa reports a 5-year dividend growth of 6.13% year and a payout ratio of 332.88%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with EDP - Energias de Portugal P/E ratio at 110.93 and Endesa's P/E ratio at 15.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EDP - Energias de Portugal P/B ratio is 12.50 while Endesa's P/B ratio is 1.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EDP - Energias de Portugal has seen a 5-year revenue growth of -0.90%, while Endesa's is 1.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EDP - Energias de Portugal's ROE at 11.07% and Endesa's ROE at 8.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.23 for EDP - Energias de Portugal and $10.35 for Endesa. Over the past year, EDP - Energias de Portugal's prices ranged from $35.39 to $51.02, with a yearly change of 44.17%. Endesa's prices fluctuated between $8.54 and $11.11, with a yearly change of 29.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.