OGE Energy (NYSE:OGE) versus ENGIE (OTCMKTS:ENGIY) Critical Comparison

ENGIE (OTCMKTS:ENGIY) and OGE Energy (NYSE:OGE) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares ENGIE and OGE Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENGIE	$81.38 billion	1.00	$4.33 billion	N/A	N/A
OGE Energy	$3.26 billion	3.02	$470.70 million	$2.24	21.33

ENGIE has higher revenue and earnings than OGE Energy.

Dividends

ENGIE pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.6%. OGE Energy pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OGE Energy has raised its dividend for 18 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings for ENGIE and OGE Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENGIE	0	3	4	2	2.89
OGE Energy	0	6	4	0	2.40

OGE Energy has a consensus target price of $49.11, indicating a potential upside of 2.78%. Given OGE Energy’s higher possible upside, analysts clearly believe OGE Energy is more favorable than ENGIE.

Profitability

This table compares ENGIE and OGE Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENGIE	N/A	N/A	N/A
OGE Energy	14.03%	9.47%	3.20%

Institutional and Insider Ownership

71.8% of OGE Energy shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

ENGIE has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Summary

OGE Energy beats ENGIE on 10 of the 15 factors compared between the two stocks.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.

About OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy services provider in the United States. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 896,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.