Genie Energy (NYSE:GNE) and Exelon (NYSE:EXC) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Earnings & Valuation
This table compares Genie Energy and Exelon’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genie Energy||$264.20 million||0.77||-$6.99 million||N/A||N/A|
|Exelon||$33.53 billion||1.35||$3.77 billion||$2.60||18.06|
Exelon has higher revenue and earnings than Genie Energy.
Insider & Institutional Ownership
15.8% of Genie Energy shares are held by institutional investors. Comparatively, 78.8% of Exelon shares are held by institutional investors. 34.4% of Genie Energy shares are held by company insiders. Comparatively, 0.7% of Exelon shares are held by company 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.
This table compares Genie Energy and Exelon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 3.9%. Exelon pays an annual dividend of $1.38 per share and has a dividend yield of 2.9%. Exelon pays out 53.1% of its earnings in the form of a dividend. Genie Energy has raised its dividend for 3 consecutive years and Exelon has raised its dividend for 2 consecutive years. Genie Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Genie Energy has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Exelon has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Genie Energy and Exelon, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Exelon has a consensus price target of $46.06, indicating a potential downside of 1.92%. Given Exelon’s higher possible upside, analysts clearly believe Exelon is more favorable than Genie Energy.
Exelon beats Genie Energy on 8 of the 15 factors compared between the two stocks.
About Genie Energy
Genie Energy Ltd., through its subsidiaries, operates as a retail energy provider; and an oil and gas exploration company. The company operates through three segments: Genie Retail Energy; Afek Oil and Gas, Ltd.; and Genie Oil and Gas. It resells electricity and natural gas to residential and small business customers primarily in the Eastern and Midwestern United States; and offers energy brokerage and advisory services. The company also holds an 86.1% interest in the southern portion of the Golan Heights in Northern Israel. Genie Energy Ltd. was incorporated in 2001 and is headquartered in Newark, New Jersey.
Exelon Corporation, a utility services holding company, engages in energy generation and delivery businesses in the United States and Canada. The company owns electric generating facilities, such as nuclear, fossil, wind, hydroelectric, and solar generating facilities. It also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services. In addition, it is involved in the purchase and regulated retail sale of electricity; and the transmission and distribution of electricity to retail customers in Northern Illinois, Southeastern Pennsylvania, Central Maryland, Delaware, and Southern New Jersey. Further, the company engages in the purchase and regulated retail sale of natural gas, and the distribution of natural gas to retail customers in Pennsylvania counties surrounding the City of Philadelphia, Central Maryland, and Delaware. Additionally, it offers support services, including corporate strategy and development, legal, human resources, information technology, finance, real estate, security, corporate communications, supply at cost, engineering, distribution and transmission planning, asset management, system operations, and power procurement services. The company serves distribution utilities, municipalities, cooperatives, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.
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