Financial Analysis: Electricité de France (OTCMKTS:ECIFF) vs. Public Service Enterprise Group (NYSE:PEG)

Public Service Enterprise Group (NYSE:PEG) and Electricité de France (OTCMKTS:ECIFF) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Public Service Enterprise Group and Electricité de France, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Service Enterprise Group	0	8	7	1	2.56
Electricité de France	0	0	0	0	0.00

Public Service Enterprise Group presently has a consensus target price of $91.25, suggesting a potential upside of 20.83%. Given Public Service Enterprise Group’s stronger consensus rating and higher possible upside, analysts plainly believe Public Service Enterprise Group is more favorable than Electricité de France.

Valuation & Earnings

This table compares Public Service Enterprise Group and Electricité de France”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Service Enterprise Group	$12.79 billion	2.94	$2.11 billion	$4.52	16.71
Electricité de France	N/A	N/A	N/A	$1.90	6.77

Public Service Enterprise Group has higher revenue and earnings than Electricité de France. Electricité de France is trading at a lower price-to-earnings ratio than Public Service Enterprise Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Public Service Enterprise Group pays an annual dividend of $2.68 per share and has a dividend yield of 3.5%. Electricité de France pays an annual dividend of $0.68 per share and has a dividend yield of 5.3%. Public Service Enterprise Group pays out 59.3% of its earnings in the form of a dividend. Electricité de France pays out 35.8% 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. Public Service Enterprise Group has raised its dividend for 14 consecutive years. Electricité de France is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Public Service Enterprise Group and Electricité de France’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Public Service Enterprise Group	17.69%	12.30%	3.66%
Electricité de France	N/A	N/A	N/A

Institutional and Insider Ownership

73.3% of Public Service Enterprise Group shares are owned by institutional investors. Comparatively, 3.7% of Electricité de France shares are owned by institutional investors. 0.2% of Public Service Enterprise Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Public Service Enterprise Group beats Electricité de France on 13 of the 15 factors compared between the two stocks.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.

About Electricité de France

Electricité de France S.A., an integrated energy company, engages in the power generation, transmission, distribution, supply, and trading activities in France, the United Kingdom, Italy, and internationally. The company generates electricity through nuclear, fossil fuel, hydro, solar, wind, biomass, biogas, thermal, and cogeneration plants. It also manages low and medium-voltage public electricity distribution networks; operates, maintains, and develops high-voltage and very-high-voltage electricity transmission networks; and services and produces equipment and fuel for nuclear reactors. In addition, the company is involved in commodity trading activities; and the provision of energy services, including district heating services, thermal energy services, etc. It serves approximately 38.5 million customers, including small businesses, local authorities, and industrial and residential customers. The company was founded in 1946 and is headquartered in Paris, France.