Contrasting Engie Brasl Ega (OTCMKTS:EGIEY) and Korea Electric Power (NYSE:KEP)

Korea Electric Power (NYSE:KEP) and Engie Brasl Ega (OTCMKTS:EGIEY) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Dividends

Korea Electric Power pays an annual dividend of $0.52 per share and has a dividend yield of 4.4%. Engie Brasl Ega pays an annual dividend of $0.18 per share and has a dividend yield of 3.0%. Korea Electric Power pays out 10.9% of its earnings in the form of a dividend. Engie Brasl Ega pays out 43.9% 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. Korea Electric Power is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Korea Electric Power and Engie Brasl Ega, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korea Electric Power	2	2	0	0	1.50
Engie Brasl Ega	1	0	0	0	1.00

Profitability

This table compares Korea Electric Power and Engie Brasl Ega’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korea Electric Power	8.95%	18.25%	3.45%
Engie Brasl Ega	19.40%	19.64%	4.88%

Earnings & Valuation

This table compares Korea Electric Power and Engie Brasl Ega”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Korea Electric Power	$68.57 billion	0.22	$5.98 billion	$4.78	2.50
Engie Brasl Ega	$2.30 billion	2.95	$462.59 million	$0.41	14.49

Korea Electric Power has higher revenue and earnings than Engie Brasl Ega. Korea Electric Power is trading at a lower price-to-earnings ratio than Engie Brasl Ega, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Korea Electric Power has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Engie Brasl Ega has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Summary

Korea Electric Power beats Engie Brasl Ega on 7 of the 12 factors compared between the two stocks.

About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2022, the company had a total of 770 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,723 megawatts; transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 895 substations with an installed transformer capacity of 347,426 megavolt-amperes; and distribution system included 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also provides engineering and construction services for utility plant and others; utility plant maintenance, electric power information technology, resources development, facility maintenance, electric meter reading, and security services; and engages in nuclear fuel, fly ashes recycling, utility plants construction and operation, and wood pellet utilization businesses. Korea Electric Power Corporation was founded in 1898 and is headquartered in Naju-si, South Korea.

About Engie Brasl Ega

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.