Financial Analysis: Edison International (NYSE:EIX) vs. Genie Energy (NYSE:GNE)

Edison International (NYSE:EIX) and Genie Energy (NYSE:GNE) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edison International	$18.56 billion	1.23	$4.70 billion	$9.41	6.31
Genie Energy	$502.62 million	0.87	$24.01 million	$0.81	20.45

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

Insider & Institutional Ownership

88.9% of Edison International shares are held by institutional investors. Comparatively, 49.2% of Genie Energy shares are held by institutional investors. 1.2% of Edison International shares are held by insiders. Comparatively, 18.5% of Genie Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edison International	20.30%	15.53%	3.07%
Genie Energy	5.05%	12.80%	7.82%

Volatility and Risk

Edison International has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Edison International and Genie Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edison International	4	10	1	0	1.80
Genie Energy	0	2	0	0	2.00

Edison International currently has a consensus target price of $60.58, suggesting a potential upside of 2.02%. Given Edison International’s higher probable upside, analysts plainly believe Edison International is more favorable than Genie Energy.

Dividends

Edison International pays an annual dividend of $3.51 per share and has a dividend yield of 5.9%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Edison International pays out 37.3% 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. Edison International has increased its dividend for 23 consecutive years. Edison International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Edison International beats Genie Energy on 12 of the 17 factors compared between the two stocks.

About Edison International

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. The company supplies and delivers electricity to approximately 50,000 square mile area of southern California to residential, commercial, industrial, public authorities, agricultural, and other sectors. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and approximately 80 transmission substations; distribution system consists of approximately 38,000 circuit-miles of overhead lines; approximately 31,000 circuit-miles of underground lines; and 730 distribution substations. The company was founded in 1886 and is based in Rosemead, California.

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.