Contrasting OGE Energy (NYSE:OGE) and Evergy (NASDAQ:EVRG)

OGE Energy (NYSE:OGEGet Free Report) and Evergy (NASDAQ:EVRGGet Free Report) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares OGE Energy and Evergy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OGE Energy 14.44% 9.48% 3.24%
Evergy 14.63% 9.09% 2.75%

Analyst Ratings

This is a breakdown of current ratings and price targets for OGE Energy and Evergy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy 0 7 4 0 2.36
Evergy 0 3 8 0 2.73

OGE Energy currently has a consensus target price of $49.80, indicating a potential upside of 5.86%. Evergy has a consensus target price of $90.60, indicating a potential upside of 9.08%. Given Evergy’s stronger consensus rating and higher probable upside, analysts plainly believe Evergy is more favorable than OGE Energy.

Institutional and Insider Ownership

71.8% of OGE Energy shares are held by institutional investors. Comparatively, 87.2% of Evergy shares are held by institutional investors. 0.6% of OGE Energy shares are held by company insiders. Comparatively, 1.5% of Evergy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.6%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.3%. OGE Energy pays out 74.9% of its earnings in the form of a dividend. Evergy pays out 73.7% 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. OGE Energy has raised its dividend for 18 consecutive years and Evergy has raised its dividend for 20 consecutive years.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OGE Energy $3.24 billion 3.00 $470.70 million $2.27 20.72
Evergy $6.03 billion 3.17 $855.60 million $3.77 22.03

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

Volatility & Risk

OGE Energy has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

Evergy beats OGE Energy on 14 of the 17 factors compared between the two stocks.

About OGE Energy

(Get Free Report)

OGE Energy Corp., together with its subsidiaries, operates as an energy services provider in the United States. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 896,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.

About Evergy

(Get Free Report)

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.

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