Analyzing Enlight Renewable Energy (NASDAQ:ENLT) and PPL (NYSE:PPL)
by Kim Johansen · The Markets DailyEnlight Renewable Energy (NASDAQ:ENLT – Get Free Report) and PPL (NYSE:PPL – Get Free Report) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Profitability
This table compares Enlight Renewable Energy and PPL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enlight Renewable Energy | 11.09% | 3.02% | 0.91% |
| PPL | 10.49% | 8.88% | 3.11% |
Risk and Volatility
Enlight Renewable Energy has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, PPL has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Insider & Institutional Ownership
38.9% of Enlight Renewable Energy shares are held by institutional investors. Comparatively, 77.0% of PPL shares are held by institutional investors. 0.2% of PPL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Enlight Renewable Energy and PPL”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enlight Renewable Energy | $398.80 million | N/A | $70.92 million | $0.36 | 49.86 |
| PPL | $8.46 billion | 3.03 | $888.00 million | $1.21 | 28.71 |
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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Enlight Renewable Energy and PPL, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enlight Renewable Energy | 0 | 2 | 2 | 0 | 2.50 |
| PPL | 0 | 3 | 8 | 0 | 2.73 |
Enlight Renewable Energy currently has a consensus price target of $19.67, suggesting a potential upside of 9.56%. PPL has a consensus price target of $34.00, suggesting a potential downside of 2.14%. 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 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.
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.