Financial Survey: Consolidated Edison (ED) and Genie Energy (GNE)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Consolidated Edison and Genie Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Edison 5 6 0 0 1.55
Genie Energy 0 0 0 0 N/A

Consolidated Edison currently has a consensus price target of $75.51, suggesting a potential downside of 3.82%. Given Consolidated Edison’s higher possible upside, research analysts plainly believe Consolidated Edison is more favorable than Genie Energy.

Dividends

Consolidated Edison pays an annual dividend of $2.96 per share and has a dividend yield of 3.8%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 3.8%. Consolidated Edison pays out 72.4% of its earnings in the form of a dividend. Consolidated Edison has increased its dividend for 44 consecutive years.

Institutional and Insider Ownership

58.8% of Consolidated Edison shares are owned by institutional investors. Comparatively, 15.7% of Genie Energy shares are owned by institutional investors. 0.2% of Consolidated Edison shares are owned by company insiders. Comparatively, 34.4% 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 stock is poised for long-term growth.

Earnings and Valuation

This table compares Consolidated Edison and Genie Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consolidated Edison $12.03 billion 2.03 $1.53 billion $4.09 19.20
Genie Energy $264.20 million 0.80 -$6.99 million N/A N/A

Consolidated Edison has higher revenue and earnings than Genie Energy.

Risk & Volatility

Consolidated Edison has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Consolidated Edison 12.60% 8.64% 2.77%
Genie Energy 3.42% 32.68% 13.70%

Summary

Consolidated Edison beats Genie Energy on 8 of the 14 factors compared between the two stocks.

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in regulated electric, gas, and steam delivery businesses in the United States. The company offers electric services to approximately 3.4 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 1,600 customers in parts of Manhattan. It also supplies electricity to approximately 0.3 million customers in southeastern New York, and northern New Jersey; and gas to approximately 0.1 million customers in southeastern New York. The company operates 532 circuit miles of transmission lines; 39 transmission substations; 62 distribution substations; 85,835 in-service line transformers; 3,743 pole miles of overhead distribution lines; and 2,138 miles of underground distribution lines, as well as 4,395 miles of mains and 317,236 service lines for natural gas distribution. In addition, it owns, operates, and develops renewable and energy infrastructure projects; and provides energy-related products and services to wholesale and retail customers, as well as invests in electric and gas transmission projects. The company primarily sells electricity to industrial, commercial, residential, and governmental customers. Consolidated Edison, Inc. was founded in 1884 and is based in New York, New York.

About Genie Energy

Genie Energy Ltd., through its subsidiaries, operates as a retail energy provider; and an oil and gas exploration company. The company operates through three segments: Genie Retail Energy; Afek Oil and Gas, Ltd.; and Genie Oil and Gas. It resells electricity and natural gas to residential and small business customers primarily in the Eastern and Midwestern United States; and offers energy brokerage and advisory services. The company also holds an 86.1% interest in the southern portion of the Golan Heights in Northern Israel. Genie Energy Ltd. was incorporated in 2001 and is headquartered in Newark, New Jersey.

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