Endesa vs Naturgy Energy Which Outperforms?

Endesa and Naturgy are two of the leading energy companies in Spain, both listed on the stock market and offering investors opportunities in the sector. Endesa, founded in 1944, is focused on electricity generation and distribution, with a strong presence in renewable energy. Naturgy, on the other hand, has a diverse portfolio that includes electricity, gas, and renewable energy projects. Both companies have experienced fluctuations in their stock prices in recent years, making them both attractive options for investors seeking exposure to the energy market.

Endesa or Naturgy Energy?

When comparing Endesa and Naturgy Energy, 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 Endesa and Naturgy Energy.

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. Endesa has a dividend yield of 5.66%, while Naturgy Energy has a dividend yield of 6.87%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Endesa reports a 5-year dividend growth of 6.13% year and a payout ratio of 332.88%. On the other hand, Naturgy Energy reports a 5-year dividend growth of 5.86% year and a payout ratio of 65.83%.

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 Endesa P/E ratio at 16.52 and Naturgy Energy's P/E ratio at 2.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Endesa P/B ratio is 1.45 while Naturgy Energy's P/B ratio is 0.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Endesa has seen a 5-year revenue growth of 1.56%, while Naturgy Energy's is 3.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Endesa's ROE at 8.97% and Naturgy Energy's ROE at 20.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.80 for Endesa and $4.71 for Naturgy Energy. Over the past year, Endesa's prices ranged from $8.54 to $11.54, with a yearly change of 35.05%. Naturgy Energy's prices fluctuated between $4.15 and $5.95, with a yearly change of 43.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.