Xcel Energy (NASDAQ:XEL – Get Free Report) and Engie Brasl Ega (OTCMKTS:EGIEY – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Insider & Institutional Ownership
78.4% of Xcel Energy shares are held by institutional investors. 0.2% of Xcel Energy shares are held 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
Xcel Energy pays an annual dividend of $2.37 per share and has a dividend yield of 3.0%. Engie Brasl Ega pays an annual dividend of $0.18 per share and has a dividend yield of 2.7%. Xcel Energy pays out 68.3% of its earnings in the form of a dividend. Engie Brasl Ega pays out 43.9% 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. Xcel Energy has raised its dividend for 22 consecutive years. Xcel Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Xcel Energy and Engie Brasl Ega, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xcel Energy | 1 | 0 | 13 | 3 | 3.06 |
| Engie Brasl Ega | 1 | 0 | 0 | 0 | 1.00 |
Xcel Energy currently has a consensus price target of $90.63, suggesting a potential upside of 13.99%. Given Xcel Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Xcel Energy is more favorable than Engie Brasl Ega.
Profitability
This table compares Xcel Energy and Engie Brasl Ega’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xcel Energy | 14.14% | 10.37% | 2.90% |
| Engie Brasl Ega | 19.40% | 20.37% | 5.03% |
Earnings & Valuation
This table compares Xcel Energy and Engie Brasl Ega”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xcel Energy | $14.78 billion | 3.36 | $2.02 billion | $3.47 | 22.91 |
| Engie Brasl Ega | $2.30 billion | 3.32 | $462.59 million | $0.41 | 16.32 |
Xcel Energy has higher revenue and earnings than Engie Brasl Ega. Engie Brasl Ega is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Xcel Energy beats Engie Brasl Ega on 14 of the 18 factors compared between the two stocks.
About Xcel Energy
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.
About Engie Brasl Ega
Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
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