Analyzing Edison International (EIX) and OGE Energy Corporation (OGE)
Edison International (NYSE: EIX) and OGE Energy Corporation (NYSE:OGE) are both mid-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Earnings and Valuation
This table compares Edison International and OGE Energy Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Edison International||$12.08 billion||2.15||$4.10 billion||$4.27||18.63|
|OGE Energy Corporation||$2.32 billion||3.05||$811.70 million||$1.91||18.54|
Edison International has higher revenue and earnings than OGE Energy Corporation. OGE Energy Corporation is trading at a lower price-to-earnings ratio than Edison International, indicating that it is currently the more affordable of the two stocks.
Edison International pays an annual dividend of $2.17 per share and has a dividend yield of 2.7%. OGE Energy Corporation pays an annual dividend of $1.21 per share and has a dividend yield of 3.4%. Edison International pays out 50.8% of its earnings in the form of a dividend. OGE Energy Corporation pays out 63.4% 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. Edison International has raised its dividend for 10 consecutive years and OGE Energy Corporation has raised its dividend for 12 consecutive years. OGE Energy Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent recommendations for Edison International and OGE Energy Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OGE Energy Corporation||0||3||2||0||2.40|
Edison International presently has a consensus target price of $84.59, suggesting a potential upside of 6.36%. OGE Energy Corporation has a consensus target price of $35.60, suggesting a potential upside of 0.51%. Given Edison International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Edison International is more favorable than OGE Energy Corporation.
This table compares Edison International and OGE Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OGE Energy Corporation||16.50%||11.06%||3.80%|
Institutional & Insider Ownership
81.9% of Edison International shares are owned by institutional investors. Comparatively, 61.8% of OGE Energy Corporation shares are owned by institutional investors. 0.4% of Edison International shares are owned by insiders. Comparatively, 0.5% of OGE Energy Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Edison International has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, OGE Energy Corporation has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Edison International beats OGE Energy Corporation on 9 of the 17 factors compared between the two stocks.
About Edison International
Edison International is the holding company of Southern California Edison Company (SCE). As of December 31, 2016, SCE, a public utility, was primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. The Company is also the parent company of Edison Energy Group, Inc. (Edison Energy Group), a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar to commercial and industrial customers. SCE’s projects include West of Devers, Mesa Substation, Alberhill System, Riverside Transmission Reliability, Eldorado-Lugo-Mohave Upgrade, Tehachapi and Coolwater-Lugo. As of December 31, 2016, the West of Devers Project consisted of upgrading and reconfiguring approximately 48 miles of existing 220 kilovolt (kV) transmission lines between the Devers, El Casco, Vista and San Bernardino substations.
About OGE Energy Corporation
OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.
Receive News & Ratings for Edison International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Edison International and related companies with MarketBeat.com's FREE daily email newsletter.