Naturgy Energy vs Endesa Which Is Superior?

Naturgy Energy and Endesa are two leading energy companies in Spain, both operating in the gas and electricity sector. These companies are key players in the country's energy market and have a significant impact on the economy. Investors closely monitor their stocks as they are heavily influenced by market trends and government regulations. The performance of Naturgy Energy and Endesa stocks can reflect broader trends in the energy sector, making them important indicators for investors seeking opportunities in this industry.

Naturgy Energy or Endesa?

When comparing Naturgy Energy 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 Naturgy Energy 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. Naturgy Energy has a dividend yield of 6.65%, while Endesa has a dividend yield of 5.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Naturgy Energy reports a 5-year dividend growth of 5.86% year and a payout ratio of 65.83%. 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 Naturgy Energy P/E ratio at 2.20 and Endesa's P/E ratio at 16.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Naturgy Energy P/B ratio is 0.45 while Endesa's P/B ratio is 1.46.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.77 for Naturgy Energy and $10.99 for Endesa. Over the past year, Naturgy Energy's prices ranged from $4.15 to $6.12, with a yearly change of 47.42%. Endesa's prices fluctuated between $8.54 and $11.54, with a yearly change of 35.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.