Critical Review: Endesa (OTCMKTS:ELEZF) vs. Genie Energy (NYSE:GNE)

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

Dividends

Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Endesa pays an annual dividend of $1.19 per share and has a dividend yield of 2.4%. Genie Energy pays out 61.2% of its earnings in the form of a dividend. Endesa pays out 81.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Genie Energy and Endesa, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genie Energy	0	1	0	1	3.00
Endesa	0	0	0	0	0.00

Insider & Institutional Ownership

49.2% of Genie Energy shares are held by institutional investors. Comparatively, 7.1% of Endesa shares are held by institutional investors. 18.5% 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.

Earnings and Valuation

This table compares Genie Energy and Endesa”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genie Energy	$507.48 million	0.76	$24.01 million	$0.49	29.75
Endesa	N/A	N/A	N/A	$1.46	33.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genie Energy	3.22%	9.72%	5.45%
Endesa	N/A	N/A	N/A

Summary

Genie Energy beats Endesa on 9 of the 12 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 Endesa

Endesa, S.A. engages in the generation, distribution, and sale of electricity in Spain, Portugal, France, Germany, Morocco, Italy, the United Kingdom, Singapore, and internationally. The company generates electricity from various energy sources, such as hydroelectric, nuclear, thermal, wind, and solar. It also offers advisory services and technology relating to energy efficiency, distributed generation, and energy demand management; deploys structures for recharging electric vehicles, vehicle-to-grid, and second-life services for batteries; develops integrated services for local administrations, such as public lighting, smart city development, energy efficiency services, and solutions for connectivity; and provides energy producers with financial solutions, as well as provides engineering and construction activities for facilities related to the electricity business. As of December 31, 2023, it had an installed capacity of 21,247 MW in Spain; operates 319,136 km of distribution and transmission networks; and distributes electricity to 10,522 thousands customers and gas to 1,829 thousands customers. The company was formerly known as Empresa Nacional de Electricidad, S.A. and changed its name to Endesa, S.A. in June 1997. The company was incorporated in 1944 and is headquartered in Madrid, Spain. Endesa, S.A. operates as a subsidiary of Enel Iberia Srl.