CenterPoint Energy (NYSE:CNP – Get Free Report) and Genie Energy (NYSE:GNE – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares CenterPoint Energy and Genie Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CenterPoint Energy | 11.37% | 10.25% | 2.52% |
| Genie Energy | 1.00% | 4.47% | 2.16% |
Earnings and Valuation
This table compares CenterPoint Energy and Genie Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CenterPoint Energy | $8.64 billion | 3.01 | $1.02 billion | $1.58 | 25.20 |
| Genie Energy | $425.20 million | 0.85 | $12.59 million | $0.80 | 17.08 |
CenterPoint Energy has higher revenue and earnings than Genie Energy. Genie Energy is trading at a lower price-to-earnings ratio than CenterPoint Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for CenterPoint Energy and Genie Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CenterPoint Energy | 1 | 5 | 7 | 0 | 2.46 |
| Genie Energy | 0 | 1 | 0 | 0 | 2.00 |
CenterPoint Energy currently has a consensus price target of $41.82, indicating a potential upside of 5.03%. Given CenterPoint Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CenterPoint Energy is more favorable than Genie Energy.
Insider & Institutional Ownership
91.8% of CenterPoint Energy shares are owned by institutional investors. Comparatively, 49.2% of Genie Energy shares are owned by institutional investors. 0.1% of CenterPoint Energy shares are owned by company insiders. Comparatively, 17.4% of Genie Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
CenterPoint Energy has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Dividends
CenterPoint Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. CenterPoint Energy pays out 55.7% of its earnings in the form of a dividend. Genie Energy pays out 37.5% 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. CenterPoint Energy has increased its dividend for 5 consecutive years. CenterPoint Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
CenterPoint Energy beats Genie Energy on 15 of the 17 factors compared between the two stocks.
About CenterPoint Energy
CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through two segments, Electric and Natural Gas. The Electric segment includes electric transmission and distribution services to electric customers and electric generation assets, as well as optimizes assets in the wholesale power market. The Natural Gas segment engages in the intrastate natural gas sales, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and provides maintenance and repair services of home appliances to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Mississippi, Ohio, and Texas through a third party. It serves approximately 2,534,730 metered customers; owned 348 substations with transformer capacity of 79,719 megavolt amperes; and owned and operated 217 miles of intrastate pipeline in Louisiana and Texas. The company was founded in 1866 and is headquartered in Houston, Texas.
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.
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