Analyzing Genie Energy (NYSE:GNE) and PPL (NYSE:PPL)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for PPL and Genie Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPL	0	2	9	1	2.92
Genie Energy	0	1	0	0	2.00

PPL currently has a consensus price target of $41.00, indicating a potential upside of 7.13%. Given PPL’s stronger consensus rating and higher probable upside, equities research analysts plainly believe PPL is more favorable than Genie Energy.

Risk and Volatility

PPL has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Dividends

PPL pays an annual dividend of $1.09 per share and has a dividend yield of 2.8%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. PPL pays out 68.1% of its earnings in the form of a dividend. Genie Energy pays out 37.5% 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. PPL has increased its dividend for 3 consecutive years. PPL is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

77.0% of PPL shares are owned by institutional investors. Comparatively, 49.2% of Genie Energy shares are owned by institutional investors. 0.2% of PPL shares are owned by insiders. Comparatively, 17.4% of Genie Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares PPL and Genie Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PPL	13.06%	9.29%	3.10%
Genie Energy	1.00%	4.47%	2.16%

Earnings and Valuation

This table compares PPL 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
PPL	$9.04 billion	3.18	$1.18 billion	$1.60	23.92
Genie Energy	$425.20 million	0.92	$12.59 million	$0.80	18.45

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

Summary

PPL beats Genie Energy on 16 of the 18 factors compared between the two stocks.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

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.