Financial Contrast: ENGIE (OTCMKTS:ENGIY) & OGE Energy (NYSE:OGE)

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

Dividends

OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.6%. ENGIE pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. 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.

Profitability

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

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

Analyst Ratings

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

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

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

Insider & Institutional Ownership

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

Earnings & Valuation

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

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

ENGIE has higher revenue and earnings than OGE Energy.

Volatility & Risk

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

Summary

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

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.

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.