OGE Energy (NYSE:OGE) and CENTRAIS ELETRI/S (NYSE:EBR.B) are both mid-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Volatility and Risk
OGE Energy has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, CENTRAIS ELETRI/S has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
OGE Energy pays an annual dividend of $1.46 per share and has a dividend yield of 3.7%. CENTRAIS ELETRI/S does not pay a dividend. OGE Energy pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OGE Energy has raised its dividend for 12 consecutive years.
This table compares OGE Energy and CENTRAIS ELETRI/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares OGE Energy and CENTRAIS ELETRI/S’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OGE Energy||$2.26 billion||3.51||$619.00 million||$1.92||20.69|
|CENTRAIS ELETRI/S||$11.86 billion||0.20||-$552.42 million||N/A||N/A|
OGE Energy has higher earnings, but lower revenue than CENTRAIS ELETRI/S.
Insider and Institutional Ownership
62.5% of OGE Energy shares are owned by institutional investors. Comparatively, 0.9% of CENTRAIS ELETRI/S shares are owned by institutional investors. 0.4% of OGE Energy shares are owned 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.
This is a breakdown of current ratings and target prices for OGE Energy and CENTRAIS ELETRI/S, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OGE Energy presently has a consensus target price of $37.00, suggesting a potential downside of 6.85%. Given OGE Energy’s higher probable upside, equities analysts plainly believe OGE Energy is more favorable than CENTRAIS ELETRI/S.
OGE Energy beats CENTRAIS ELETRI/S on 11 of the 13 factors compared between the two stocks.
OGE Energy Company Profile
OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that offers physical delivery and related services for electricity and natural gas primarily in the south central United States. The company operates in 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. This segment furnishes retail electric service in 267 communities and their contiguous rural and suburban areas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating facilities. The Natural Gas Midstream Operations segment is involved in gathering, processing, transporting, and storing natural gas; and the provision of crude oil gathering services, and interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, industrial end users, and natural gas marketers. As of December 31, 2017, the company owned and operated interconnected electric generation, transmission, and distribution system, including 10 generating stations with an aggregate capability of 6,304 megawatts; and a transmission system comprising 52 substations and 4,949 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas. Its distribution system consisted of 346 substations, 29,317 structure miles of overhead lines, 2,824 miles of underground conduit, and 10,875 miles of underground conductors in Oklahoma, as well as 30 substations, 2,785 structure miles of overhead lines, 282 miles of underground conduit, and 689 miles of underground conductors in Arkansas. OGE Energy Corp. was founded in 1995 and is headquartered in Oklahoma City, Oklahoma.
CENTRAIS ELETRI/S Company Profile
Centrais Elétricas Brasileiras SA engages in the production and dissemination of electricity. It operates through the following segments: Generation, Transmission, and Distribution. The Generation segment refers to the electric power generation including hydroelectric, thermal, and nuclear power plants. The Transmission segment refers to transmission of electric power in Brazil. The Distribution segment is responsible for power distribution in six states of the North and Northeast regions of Brazil. The company was founded in June 11, 1962 by Getulio Dornelles Vargas and is headquartered in Rio de Janeiro, Brazil.
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