Analyzing PPL (NYSE:PPL) and Enlight Renewable Energy (NASDAQ:ENLT)

PPL (NYSE:PPL) and Enlight Renewable Energy (NASDAQ:ENLT) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPL	10.49%	8.88%	3.11%
Enlight Renewable Energy	11.09%	3.02%	0.91%

Valuation and Earnings

This table compares PPL and Enlight Renewable Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPL	$8.46 billion	3.03	$888.00 million	$1.21	28.71
Enlight Renewable Energy	$398.80 million	N/A	$70.92 million	$0.36	49.86

PPL has higher revenue and earnings than Enlight Renewable Energy. PPL is trading at a lower price-to-earnings ratio than Enlight Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PPL has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Enlight Renewable Energy has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

77.0% of PPL shares are owned by institutional investors. Comparatively, 38.9% of Enlight Renewable Energy shares are owned by institutional investors. 0.2% of PPL shares are owned by company insiders. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PPL and Enlight Renewable Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPL	0	3	8	0	2.73
Enlight Renewable Energy	0	2	2	0	2.50

PPL currently has a consensus target price of $34.00, suggesting a potential downside of 2.14%. Enlight Renewable Energy has a consensus target price of $19.67, suggesting a potential upside of 9.56%. Given Enlight Renewable Energy’s higher possible upside, analysts plainly believe Enlight Renewable Energy is more favorable than PPL.

Summary

PPL beats Enlight Renewable Energy on 9 of the 13 factors compared between the two stocks.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

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.