Reviewing Engie Brasl Ega (OTCMKTS:EGIEY) & Consolidated Edison (NYSE:ED)

Engie Brasl Ega (OTCMKTS:EGIEY) and Consolidated Edison (NYSE:ED) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Valuation and Earnings

This table compares Engie Brasl Ega and Consolidated Edison”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Engie Brasl Ega	$2.30 billion	3.32	$462.59 million	$0.41	16.32
Consolidated Edison	$16.92 billion	2.31	$2.02 billion	$5.94	17.82

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

Profitability

This table compares Engie Brasl Ega and Consolidated Edison’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Engie Brasl Ega	19.40%	20.37%	5.03%
Consolidated Edison	12.52%	8.33%	2.78%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Engie Brasl Ega and Consolidated Edison, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Engie Brasl Ega	1	0	0	0	1.00
Consolidated Edison	6	6	3	0	1.80

Consolidated Edison has a consensus target price of $108.71, indicating a potential upside of 2.68%. Given Consolidated Edison’s stronger consensus rating and higher possible upside, analysts plainly believe Consolidated Edison is more favorable than Engie Brasl Ega.

Insider & Institutional Ownership

66.3% of Consolidated Edison shares are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Engie Brasl Ega pays an annual dividend of $0.18 per share and has a dividend yield of 2.7%. Consolidated Edison pays an annual dividend of $3.55 per share and has a dividend yield of 3.4%. Engie Brasl Ega pays out 43.9% of its earnings in the form of a dividend. Consolidated Edison pays out 59.8% 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. Consolidated Edison has increased its dividend for 52 consecutive years. Consolidated Edison is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Engie Brasl Ega has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Consolidated Edison has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Summary

Consolidated Edison beats Engie Brasl Ega on 11 of the 17 factors compared between the two stocks.

About Engie Brasl Ega

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 76 plants, including 11 hydroelectric power plants; 1 thermal power plants; 50 wind farms; 3 biomass; 9 photovoltaic and solar power plant; and 2 small hydroelectric plants. As of December 31, 2022, it had an installed capacity of 8,453.3 megawatts. The company also transports natural gas through 4,500 km of gas pipelines. In addition, it manufactures, wholesales, retails, operates, and maintains solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was founded in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.