Analyzing Pampa Energía (NYSE:PAM) and AGL Energy (OTCMKTS:AGLNF)

AGL Energy (OTCMKTS:AGLNF) and Pampa Energía (NYSE:PAM) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for AGL Energy and Pampa Energía, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGL Energy	0	0	0	0	N/A
Pampa Energía	0	2	3	0	2.60

Pampa Energía has a consensus target price of $55.88, indicating a potential downside of 10.47%. Given Pampa Energía’s higher possible upside, analysts clearly believe Pampa Energía is more favorable than AGL Energy.

Earnings and Valuation

This table compares AGL Energy and Pampa Energía”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGL Energy	N/A	N/A	N/A	$1.02	6.90
Pampa Energía	$1.73 billion	1.97	$302.00 million	$7.81	7.99

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

Institutional & Insider Ownership

15.3% of AGL Energy shares are owned by institutional investors. Comparatively, 12.8% of Pampa Energía shares are owned by institutional investors. 55.5% of Pampa Energía shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares AGL Energy and Pampa Energía’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGL Energy	N/A	N/A	N/A
Pampa Energía	20.96%	12.59%	6.76%

Summary

Pampa Energía beats AGL Energy on 9 of the 10 factors compared between the two stocks.

About AGL Energy

AGL Energy Limited supplies energy and other essential services to residential, small and large businesses, and wholesale customers in Australia. It operates through three segments: Customer Markets, Integrated Energy, and Investments. The company engages in retailing of electricity, gas, broadband, mobile, voice, solar, and energy products and services; and operates power generation portfolio and other assets including coal, gas and renewable generation, natural gas storage and production, and development projects. It also offers renewable energy schemes; and controls dispatch of owned and contracted generation assets, gas offtake agreements, and associated portfolio of energy hedging products. In addition, the company offers coal and gas-fired generation; and renewable energy sources, such as wind, hydro and solar, batteries and other firming technology; and gas production and storage assets. AGL Energy Limited was founded in 1837 and is based in Sydney, Australia.

About Pampa Energía

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.