Critical Comparison: Genie Energy (NYSE:GNE) and Centuri (NYSE:CTRI)

Genie Energy (NYSE:GNE) and Centuri (NYSE:CTRI) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Genie Energy and Centuri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genie Energy	3.22%	9.72%	5.45%
Centuri	0.98%	5.64%	1.81%

Valuation and Earnings

This table compares Genie Energy and Centuri”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genie Energy	$501.97 million	0.77	$24.01 million	$0.49	29.78
Centuri	$2.98 billion	1.04	$22.40 million	$0.34	90.62

Genie Energy has higher earnings, but lower revenue than Centuri. Genie Energy is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

49.2% of Genie Energy shares are owned by institutional investors. 18.5% of Genie Energy shares are owned by company insiders. Comparatively, 0.3% of Centuri shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Genie Energy has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, Centuri has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Genie Energy and Centuri, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genie Energy	0	1	0	1	3.00
Centuri	2	1	2	0	2.00

Centuri has a consensus price target of $37.80, indicating a potential upside of 22.68%. Given Centuri’s higher possible upside, analysts clearly believe Centuri is more favorable than Genie Energy.

Summary

Genie Energy beats Centuri on 9 of the 15 factors compared between the two stocks.

About Genie Energy

Genie Energy Ltd., through its subsidiaries, engages in the supply of electricity and natural gas to residential and small business customers in the United States and internationally. It operates in two segments, GRE and Genie Renewables. The company also develops, constructs, and operates solar energy projects for commercial and industrial customers, as well as its own portfolio; provides energy brokerage and advisory services; markets community solar energy solutions; and manufactures and distributes solar panel, as well as engages in solar installation design and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.