Reviewing Comp En De Mn Cemig ADS (NYSE:CIG) and Genie Energy (NYSE:GNE)

Genie Energy (NYSE:GNE) and Comp En De Mn Cemig ADS (NYSE:CIG) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Genie Energy and Comp En De Mn Cemig ADS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genie Energy	0	1	0	0	2.00
Comp En De Mn Cemig ADS	1	1	0	0	1.50

Dividends

Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Comp En De Mn Cemig ADS pays an annual dividend of $0.17 per share and has a dividend yield of 7.6%. Genie Energy pays out 37.5% of its earnings in the form of a dividend. Comp En De Mn Cemig ADS pays out 85.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

49.2% of Genie Energy shares are held by institutional investors. 17.4% of Genie Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Genie Energy has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares Genie Energy and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genie Energy	1.00%	4.47%	2.16%
Comp En De Mn Cemig ADS	9.45%	14.96%	6.69%

Earnings and Valuation

This table compares Genie Energy and Comp En De Mn Cemig ADS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genie Energy	$425.20 million	0.88	$12.59 million	$0.80	17.70
Comp En De Mn Cemig ADS	$7.38 billion	N/A	$1.32 billion	$0.20	11.22

Comp En De Mn Cemig ADS has higher revenue and earnings than Genie Energy. Comp En De Mn Cemig ADS is trading at a lower price-to-earnings ratio than Genie Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Comp En De Mn Cemig ADS beats Genie Energy on 7 of the 13 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 Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.