Central Puerto (NYSE:CEPU) & Meren Energy (OTCMKTS:AOIFF) Head-To-Head Survey

Meren Energy (OTCMKTS:AOIFF) and Central Puerto (NYSE:CEPU) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Meren Energy and Central Puerto’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meren Energy	N/A	3.52%	1.68%
Central Puerto	37.86%	15.69%	10.94%

Analyst Recommendations

This is a summary of current recommendations and price targets for Meren Energy and Central Puerto, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meren Energy	0	0	0	0	0.00
Central Puerto	0	1	1	0	2.50

Central Puerto has a consensus price target of $17.50, indicating a potential upside of 22.81%. Given Central Puerto’s stronger consensus rating and higher probable upside, analysts clearly believe Central Puerto is more favorable than Meren Energy.

Insider & Institutional Ownership

3.0% of Central Puerto shares are held by institutional investors. 1.0% of Meren Energy shares are held by company insiders. Comparatively, 0.1% of Central Puerto shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Meren Energy and Central Puerto”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meren Energy	N/A	N/A	-$279.10 million	($0.52)	-3.27
Central Puerto	$782.60 million	2.76	$277.08 million	$2.08	6.85

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

Risk and Volatility

Meren Energy has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Central Puerto has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Central Puerto beats Meren Energy on 12 of the 13 factors compared between the two stocks.

About Meren Energy

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.

About Central Puerto

Central Puerto S.A. engages in the electric power generation in Argentina. It operates through three segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, and Natural Gas Transport and Distribution. The company generates energy through thermal, hydroelectric, and wind farms. It also engages in the natural gas transport and distribution business. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.