Engie Brasl Ega (OTCMKTS:EGIEY – Get Free Report) and Xcel Energy (NASDAQ:XEL – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.
Volatility and Risk
Engie Brasl Ega has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Earnings & Valuation
This table compares Engie Brasl Ega and Xcel Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Engie Brasl Ega | $2.30 billion | 3.50 | $462.59 million | $0.41 | 17.22 |
| Xcel Energy | $14.67 billion | 3.25 | $2.02 billion | $3.47 | 22.02 |
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.
Insider and 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings for Engie Brasl Ega and Xcel Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Engie Brasl Ega | 1 | 0 | 0 | 0 | 1.00 |
| Xcel Energy | 1 | 0 | 13 | 3 | 3.06 |
Xcel Energy has a consensus target price of $90.63, indicating a potential upside of 18.60%. Given Xcel Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Xcel Energy is more favorable than Engie Brasl Ega.
Dividends
Engie Brasl Ega pays an annual dividend of $0.18 per share and has a dividend yield of 2.5%. Xcel Energy pays an annual dividend of $2.37 per share and has a dividend yield of 3.1%. Engie Brasl Ega pays out 43.9% of its earnings in the form of a dividend. Xcel Energy pays out 68.3% 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.
Profitability
This table compares Engie Brasl Ega and Xcel Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Engie Brasl Ega | 19.40% | 20.37% | 5.03% |
| Xcel Energy | 14.14% | 10.37% | 2.90% |
Summary
Xcel Energy beats Engie Brasl Ega on 13 of the 18 factors compared between the two stocks.
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.
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.
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