Critical Analysis: PPL (NYSE:PPL) vs. Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and PPL (NYSE:PPL) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

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

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%	3.03%	0.88%
PPL	10.49%	8.88%	3.11%

Earnings and Valuation

This table compares Enlight Renewable Energy and PPL”s gross 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	28.72

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 Recommendations

This is a breakdown of current 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, research 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.