Eversource Energy (NYSE:ES – Get Free Report) and Genie Energy (NYSE:GNE – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for Eversource Energy and Genie Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eversource Energy | 3 | 6 | 4 | 0 | 2.08 |
| Genie Energy | 0 | 2 | 0 | 0 | 2.00 |
Eversource Energy currently has a consensus target price of $72.91, suggesting a potential upside of 7.57%. Given Eversource Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Eversource Energy is more favorable than Genie Energy.
Profitability
This table compares Eversource Energy and Genie Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eversource Energy | 10.35% | 11.33% | 2.91% |
| Genie Energy | 5.05% | 12.80% | 7.82% |
Insider & Institutional Ownership
80.0% of Eversource Energy shares are held by institutional investors. Comparatively, 49.2% of Genie Energy shares are held by institutional investors. 0.2% of Eversource Energy shares are held by insiders. Comparatively, 18.5% of Genie Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Eversource Energy and Genie Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eversource Energy | $13.55 billion | 1.88 | $1.69 billion | $3.86 | 17.56 |
| Genie Energy | $502.62 million | 0.85 | $24.01 million | $0.81 | 20.12 |
Eversource Energy has higher revenue and earnings than Genie Energy. Eversource Energy is trading at a lower price-to-earnings ratio than Genie Energy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Eversource Energy has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.
Dividends
Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.6%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Eversource Energy pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genie Energy pays out 37.0% of its earnings in the form of a dividend. Eversource Energy has increased its dividend for 2 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Eversource Energy beats Genie Energy on 12 of the 17 factors compared between the two stocks.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
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.
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