Analyzing Genie Energy (NYSE:GNE) & Iberdrola (OTCMKTS:IBDRY)

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

Dividends

Iberdrola pays an annual dividend of $2.99 per share and has a dividend yield of 3.0%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Iberdrola pays out 66.2% of its earnings in the form of a dividend. Genie Energy pays out 37.0% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Iberdrola and Genie Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	0	5	4	0	2.44
Genie Energy	0	2	0	0	2.00

Volatility & Risk

Iberdrola has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Iberdrola shares are held by institutional investors. Comparatively, 49.1% of Genie Energy shares are held by institutional investors. 18.5% of Genie Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iberdrola	14.74%	9.56%	3.68%
Genie Energy	5.05%	12.80%	7.82%

Earnings and Valuation

This table compares Iberdrola and Genie Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$51.52 billion	3.18	$7.11 billion	$4.52	21.70
Genie Energy	$501.97 million	0.88	$24.01 million	$0.81	20.68

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

Summary

Iberdrola beats Genie Energy on 10 of the 15 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

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.