Critical Review: Genie Energy (NYSE:GNE) versus IDACORP (NYSE:IDA)

IDACORP (NYSE:IDA) and Genie Energy (NYSE:GNE) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider and Institutional Ownership

89.1% of IDACORP shares are owned by institutional investors. Comparatively, 49.1% of Genie Energy shares are owned by institutional investors. 0.3% of IDACORP shares are owned by insiders. Comparatively, 18.5% of Genie Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IDACORP	18.78%	9.34%	3.24%
Genie Energy	5.05%	12.80%	7.82%

Volatility & Risk

IDACORP has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Dividends

IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.7%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. IDACORP pays out 58.3% of its earnings in the form of a dividend. Genie Energy pays out 37.0% 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. IDACORP has raised its dividend for 13 consecutive years. IDACORP is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for IDACORP and Genie Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDACORP	0	2	6	0	2.75
Genie Energy	0	2	0	0	2.00

IDACORP presently has a consensus target price of $152.71, indicating a potential upside of 16.99%. Given IDACORP’s stronger consensus rating and higher possible upside, research analysts plainly believe IDACORP is more favorable than Genie Energy.

Earnings and Valuation

This table compares IDACORP 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
IDACORP	$1.80 billion	4.19	$323.47 million	$6.04	21.61
Genie Energy	$501.97 million	0.85	$24.01 million	$0.81	19.99

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

Summary

IDACORP beats Genie Energy on 13 of the 17 factors compared between the two stocks.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.

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.