Analyzing Portland General Electric (NYSE:POR) and Innergex Renewable Energy (OTCMKTS:INGXF)

Portland General Electric (NYSE:POR) and Innergex Renewable Energy (OTCMKTS:INGXF) are both mid-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Volatility and Risk

Portland General Electric has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Innergex Renewable Energy has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Dividends

Portland General Electric pays an annual dividend of $2.20 per share and has a dividend yield of 4.3%. Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Portland General Electric pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portland General Electric has raised its dividend for 2 consecutive years. Portland General Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Portland General Electric and Innergex Renewable Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portland General Electric	0	7	3	0	2.30
Innergex Renewable Energy	0	0	0	0	0.00

Portland General Electric presently has a consensus target price of $51.25, suggesting a potential upside of 1.01%. Given Portland General Electric’s stronger consensus rating and higher possible upside, equities analysts plainly believe Portland General Electric is more favorable than Innergex Renewable Energy.

Valuation and Earnings

This table compares Portland General Electric and Innergex Renewable Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portland General Electric	$3.58 billion	1.67	$306.00 million	$2.27	22.35
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18

Portland General Electric has higher revenue and earnings than Innergex Renewable Energy. Portland General Electric is trading at a lower price-to-earnings ratio than Innergex Renewable Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Portland General Electric and Innergex Renewable Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portland General Electric	7.27%	7.47%	2.30%
Innergex Renewable Energy	5.51%	5.30%	0.76%

Summary

Portland General Electric beats Innergex Renewable Energy on 12 of the 15 factors compared between the two stocks.

About Portland General Electric

Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. It operates six thermal plants, three wind farms, and seven hydroelectric facilities. As of December 31, 2023, the company owned an electric transmission system consisting of 1,254 circuit miles, including 287 circuit miles of 500 kilovolt line, 413 circuit miles of 230 kilovolt line, and 554 miles of 115 kilovolt line; and served 934 thousand retail customers in 51 cities. It also has 28,868 circuit miles of distribution lines. Portland General Electric Company was founded in 1889 and is headquartered in Portland, Oregon.

About Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.