OGE Energy Corporation (NYSE: OGE) and Portland General Electric (NYSE:POR) are both mid-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility & Risk

OGE Energy Corporation has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Portland General Electric has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Valuation & Earnings

This table compares OGE Energy Corporation and Portland General Electric’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OGE Energy Corporation $2.32 billion 3.17 $811.70 million $1.91 19.29
Portland General Electric $1.99 billion 2.14 $687.00 million $2.30 20.76

OGE Energy Corporation has higher revenue and earnings than Portland General Electric. OGE Energy Corporation is trading at a lower price-to-earnings ratio than Portland General Electric, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares OGE Energy Corporation and Portland General Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OGE Energy Corporation 16.50% 11.06% 3.80%
Portland General Electric 10.21% 8.65% 2.70%

Institutional & Insider Ownership

62.5% of OGE Energy Corporation shares are owned by institutional investors. Comparatively, 93.5% of Portland General Electric shares are owned by institutional investors. 0.5% of OGE Energy Corporation shares are owned by insiders. Comparatively, 0.6% of Portland General Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

OGE Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 3.6%. Portland General Electric pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. OGE Energy Corporation pays out 69.6% of its earnings in the form of a dividend. Portland General Electric pays out 59.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OGE Energy Corporation has raised its dividend for 10 consecutive years and Portland General Electric has raised its dividend for 11 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for OGE Energy Corporation and Portland General Electric, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy Corporation 1 5 2 0 2.13
Portland General Electric 3 4 0 0 1.57

OGE Energy Corporation presently has a consensus target price of $36.14, indicating a potential downside of 1.89%. Portland General Electric has a consensus target price of $44.50, indicating a potential downside of 6.79%. Given OGE Energy Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe OGE Energy Corporation is more favorable than Portland General Electric.

Summary

OGE Energy Corporation beats Portland General Electric on 11 of the 17 factors compared between the two stocks.

OGE Energy Corporation Company Profile

OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.

Portland General Electric Company Profile

Portland General Electric Company is an electric utility that is engaged in the wholesale purchase, transmission, distribution and retail sale of electricity in the State of Oregon. Its service area allocation of approximately 4,000 square miles is located entirely within Oregon and includes approximately 51 incorporated cities, of which Portland and Salem. It has five natural gas-fired generating facilities, which include Port Westward Unit 1 (PW1), Port Westward Unit 2 (PW2), Beaver natural gas-fired generating plant (Beaver), Coyote Springs Unit 1 (Coyote Springs) and Carty natural gas-fired generating plant (Carty). As of December 31, 2016, the Company owned and operated two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River). The Company’s hydroelectric projects consist of Pelton/Round Butte on the Deschutes River near Madras, Oregon, four plants on the Clackamas River, and one on the Willamette River.

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