Comparing Alaska Power & Telephone (OTCMKTS:APTL) & OGE Energy (NYSE:OGE)

OGE Energy (NYSE:OGE) and Alaska Power & Telephone (OTCMKTS:APTL) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Dividends

OGE Energy pays an annual dividend of $1.68 per share and has a dividend yield of 3.9%. Alaska Power & Telephone pays an annual dividend of $1.57 per share and has a dividend yield of 2.9%. OGE Energy pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alaska Power & Telephone pays out 26.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares OGE Energy and Alaska Power & Telephone”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OGE Energy	$2.67 billion	3.24	$416.80 million	$1.93	22.35
Alaska Power & Telephone	$64.21 million	1.01	$6.15 million	$5.88	9.27

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

Profitability

This table compares OGE Energy and Alaska Power & Telephone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OGE Energy	13.89%	8.59%	2.96%
Alaska Power & Telephone	10.95%	N/A	N/A

Volatility & Risk

OGE Energy has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Alaska Power & Telephone has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for OGE Energy and Alaska Power & Telephone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OGE Energy	0	2	2	0	2.50
Alaska Power & Telephone	0	0	0	0	0.00

OGE Energy presently has a consensus target price of $45.00, indicating a potential upside of 4.30%. Given OGE Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe OGE Energy is more favorable than Alaska Power & Telephone.

Insider and Institutional Ownership

71.8% of OGE Energy shares are owned by institutional investors. 0.5% of OGE Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

OGE Energy beats Alaska Power & Telephone on 14 of the 16 factors compared between the two stocks.

About OGE Energy

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 Alaska Power & Telephone

Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.