Sky Solar (NASDAQ: SKYS) and RED ELECTRICA C/ADR (OTCMKTS:RDEIY) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

RED ELECTRICA C/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 5.3%. Sky Solar does not pay a dividend. RED ELECTRICA C/ADR pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

0.1% of Sky Solar shares are owned by institutional investors. Comparatively, 0.2% of RED ELECTRICA C/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sky Solar and RED ELECTRICA C/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sky Solar N/A N/A N/A
RED ELECTRICA C/ADR N/A N/A N/A

Risk & Volatility

Sky Solar has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, RED ELECTRICA C/ADR has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sky Solar and RED ELECTRICA C/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sky Solar 0 0 2 0 3.00
RED ELECTRICA C/ADR 2 1 1 0 1.75

Sky Solar presently has a consensus price target of $5.00, indicating a potential upside of 431.91%. Given Sky Solar’s stronger consensus rating and higher possible upside, research analysts clearly believe Sky Solar is more favorable than RED ELECTRICA C/ADR.

Valuation & Earnings

This table compares Sky Solar and RED ELECTRICA C/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sky Solar $56.73 million 6.46 -$33.17 million ($0.80) -1.18
RED ELECTRICA C/ADR $2.19 billion 5.09 $757.51 million $0.70 14.74

RED ELECTRICA C/ADR has higher revenue and earnings than Sky Solar. Sky Solar is trading at a lower price-to-earnings ratio than RED ELECTRICA C/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

Sky Solar beats RED ELECTRICA C/ADR on 6 of the 11 factors compared between the two stocks.

Sky Solar Company Profile

Sky Solar Holdings, Ltd., an investment holding company, operates as an independent power producer worldwide. The company develops, owns, and operates solar parks primarily in the downstream solar market. It also sells solar energy systems, including pipeline; and engineering, construction, and procurement services, as well as engages in building and transferring solar parks. As of December 31, 2017, the company developed 318 solar parks with an aggregate capacity of 377.2 megawatts (MW) in Japan, Bulgaria, the Czech Republic, Spain, Canada, the United States, and Uruguay; and owned and operated 196.7 MW of solar parks, including 96.3 MW in Japan, 5.6 MW in the Czech Republic, 0.2 MW in Canada, 0.9 MW in Spain, 22.1 MW in the United States, and 71.6 MW in Uruguay. It also had approximately 400 MW of solar projects in various stages of development in countries, such as Chile, Japan, Canada, and the United States comprising 6.6 MW under construction, 180.1 MW of shovel-ready projects, and approximately 250 MW of solar parks in pipeline. The company has strategic partnership agreement with Hudson Clean Energy Partners for investing in renewable power and clean energy. Sky Solar Holdings, Ltd. was founded in 2009 and is headquartered in Admiralty, Hong Kong.

RED ELECTRICA C/ADR Company Profile

Red Eléctrica Corporación, S.A. transmits electricity; operates and manages transmission network for the electricity system; and manages electricity transmission grid in Spain and internationally. Its transmission network comprises approximately 43,800 kilometers; and has 86,654 MVA of transformer capacity. The company also provides consultancy, engineering, and construction services; telecommunications infrastructure services to telecommunications operators comprising leasing of dark fiber; and line and sub-station maintenance services. Red Eléctrica Corporación, S.A. was founded in 1985 and is based in Alcobendas, Spain.

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