Analyzing OGE Energy (NYSE:OGE) and Evergy (NASDAQ:EVRG)

OGE Energy (NYSE:OGE) and Evergy (NASDAQ:EVRG) are both large-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

71.8% of OGE Energy shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by company insiders. Comparatively, 1.5% of Evergy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

OGE Energy has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for OGE Energy and Evergy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OGE Energy	0	6	5	0	2.45
Evergy	0	3	10	0	2.77

OGE Energy presently has a consensus price target of $50.00, indicating a potential downside of 1.80%. Evergy has a consensus price target of $90.69, indicating a potential upside of 2.55%. Given Evergy’s stronger consensus rating and higher probable upside, analysts clearly believe Evergy is more favorable than OGE Energy.

Dividends

OGE Energy pays an annual dividend of $1.72 per share and has a dividend yield of 3.4%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.1%. OGE Energy pays out 64.9% of its earnings in the form of a dividend. Evergy pays out 61.8% 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. OGE Energy has increased its dividend for 18 consecutive years and Evergy has increased its dividend for 20 consecutive years.

Profitability

This table compares OGE Energy and Evergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OGE Energy	16.36%	10.97%	3.78%
Evergy	15.19%	9.20%	2.76%

Valuation & Earnings

This table compares OGE Energy and Evergy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OGE Energy	$3.26 billion	3.23	$470.70 million	$2.65	19.21
Evergy	$5.96 billion	3.42	$855.60 million	$4.50	19.65

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

Summary

Evergy beats OGE Energy on 13 of the 17 factors compared between the two stocks.

About OGE Energy

OGE Energy Corp. is an energy holding company based in Oklahoma City. Its principal business is Oklahoma Gas and Electric Company (OG&E), a regulated electric utility that generates, transmits, distributes and sells electricity to residential, commercial and industrial customers. OG&E serves communities in Oklahoma and western Arkansas. Its operations include power plants and the electric infrastructure used to deliver electricity to customers across its service area. The utility traces its origins to 1902, when it began providing electricity in what was then Oklahoma Territory.

About Evergy

Evergy, Inc. is an investor-owned electric utility that generates, transmits and distributes electricity to residential, commercial and industrial customers in Kansas and Missouri. Its operations include power plants and the infrastructure needed to deliver electricity across its service territory. The company was formed in 2018 through the merger of Westar Energy and Great Plains Energy, the parent company of Kansas City Power & Light. Evergy is headquartered in Kansas City, Missouri, and serves communities across the two states.