Critical Contrast: OGE Energy (NYSE:OGE) & Enel S.p.A. ADS (NYSE:ENLAY)

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

Analyst Recommendations

This is a breakdown of recent ratings for OGE Energy and Enel S.p.A. ADS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy 1 6 0 0 1.86
Enel S.p.A. ADS 0 3 1 1 2.60

OGE Energy currently has a consensus price target of $41.86, indicating a potential upside of 44.04%. Given OGE Energy’s higher possible upside, analysts plainly believe OGE Energy is more favorable than Enel S.p.A. ADS.

Dividends

OGE Energy pays an annual dividend of $1.55 per share and has a dividend yield of 5.3%. Enel S.p.A. ADS pays an annual dividend of $0.21 per share and has a dividend yield of 3.1%. OGE Energy pays out 71.8% of its earnings in the form of a dividend. OGE Energy has raised its dividend for 13 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares OGE Energy and Enel S.p.A. ADS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OGE Energy $2.23 billion 2.61 $433.60 million $2.16 13.45
Enel S.p.A. ADS $89.37 billion 0.76 $5.66 billion N/A N/A

Enel S.p.A. ADS has higher revenue and earnings than OGE Energy.

Risk & Volatility

OGE Energy has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Enel S.p.A. ADS has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

66.7% of OGE Energy shares are owned by institutional investors. Comparatively, 0.1% of Enel S.p.A. ADS shares are owned by institutional investors. 0.5% of OGE Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares OGE Energy and Enel S.p.A. ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OGE Energy 19.43% 10.64% 3.96%
Enel S.p.A. ADS 3.44% 5.49% 1.57%

Summary

OGE Energy beats Enel S.p.A. ADS on 10 of the 17 factors compared between the two stocks.

About OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that provides physical delivery and related services for electricity and natural gas primarily in the south central United States. It operates in two segments, Electric Utility and Natural Gas Midstream Operations. The Electric Utility segment generates, transmits, distributes, and sells electric energy. This segment furnishes retail electric service in 267 communities and their contiguous rural and suburban areas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. Its service area covers 30,000 square miles in Oklahoma and western Arkansas, including Oklahoma City in Oklahoma; and Fort Smith, Arkansas. The Natural Gas Midstream Operations segment engages in gathering, processing, transporting, and storing natural gas; and the provision of crude oil gathering services, and interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, local distribution company, and industrial end-user customers. As of December 31, 2018, the company owned and operated interconnected electric generation, transmission, and distribution systems, including 11 generating stations with an aggregate capability of 6,616 megawatts; and transmission systems comprising 52 substations and 5,100 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas. Its distribution systems include 345 substations; 29,345 structure miles of overhead lines; 2,940 miles of underground conduit; and 10,932 miles of underground conductors in Oklahoma, as well as 30 substations, 2,786 structure miles of overhead lines, 297 miles of underground conduit, and 685 miles of underground conductors in Arkansas. The company was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.

About Enel S.p.A. ADS

Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, constructs, operates, manages, and maintains generation plants and distribution grids; and designs, constructs, and operates merchant lines. It is also involved in energy and infrastructure engineering; research and development in sciences and engineering; the cogeneration of electricity and heat; the construction and management of manages port infrastructure; product, plant, and equipment certification; mining; finance; energy products marketing; trading; and fuel trading and logistics operations. In addition, the company engages in construction and management of LNG regasification infrastructure; desalinization and water supply; electricity system monitoring; and optical fiber network operation activities. Further, it provides testing, inspection, and certification; engineering and consulting; legal; metering, remote control, and connectivity through power line communication; business consulting, administrative, management consulting, and corporate planning; civil, mechanical, and electrical engineering; personnel administration, information technology, real estate, and business; electronic plant installation and repairing; and security services. Additionally, the company offers water systems; public lighting systems and services; upstream gas; electric mobility; and environmental studies services. It operates renewable, wind, thermal, hydroelectric, nuclear, photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.

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