Contrasting ENGIE (OTCMKTS:ENGIY) and Exelon (NASDAQ:EXC)

Exelon (NASDAQ:EXC) and ENGIE (OTCMKTS:ENGIY) are both large-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

80.9% of Exelon shares are held by institutional investors. 0.1% of Exelon shares are held by company 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

Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 3.6%. ENGIE pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Exelon pays out 61.5% of its earnings in the form of a dividend. Exelon has increased its dividend for 3 consecutive years. Exelon is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Exelon and ENGIE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exelon	$24.26 billion	1.99	$2.77 billion	$2.73	17.27
ENGIE	$81.38 billion	0.97	$4.33 billion	N/A	N/A

ENGIE has higher revenue and earnings than Exelon.

Risk & Volatility

Exelon has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, ENGIE has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Exelon and ENGIE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exelon	11.21%	9.83%	2.44%
ENGIE	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Exelon and ENGIE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exelon	1	13	4	0	2.17
ENGIE	0	4	4	1	2.67

Exelon presently has a consensus target price of $50.33, suggesting a potential upside of 6.73%. Given Exelon’s higher probable upside, research analysts plainly believe Exelon is more favorable than ENGIE.

Summary

Exelon beats ENGIE on 9 of the 15 factors compared between the two stocks.

About Exelon

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.