Critical Comparison: New Jersey Resources (NJR) vs. Engie (ENGIY)

New Jersey Resources (NYSE: NJR) and Engie (OTCMKTS:ENGIY) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

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This is a breakdown of current recommendations for New Jersey Resources and Engie, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Jersey Resources 0 1 3 0 2.75
Engie 0 0 0 0 N/A

New Jersey Resources currently has a consensus target price of $43.00, indicating a potential upside of 7.10%. Given New Jersey Resources’ higher probable upside, research analysts plainly believe New Jersey Resources is more favorable than Engie.

Dividends

New Jersey Resources pays an annual dividend of $1.09 per share and has a dividend yield of 2.7%. Engie pays an annual dividend of $0.77 per share and has a dividend yield of 4.4%. New Jersey Resources pays out 63.0% of its earnings in the form of a dividend. New Jersey Resources has raised its dividend for 22 consecutive years.

Earnings and Valuation

This table compares New Jersey Resources and Engie’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Jersey Resources $2.27 billion 1.55 $132.06 million $1.73 23.21
Engie $73.46 billion 0.58 $1.61 billion N/A N/A

Engie has higher revenue and earnings than New Jersey Resources.

Volatility & Risk

New Jersey Resources has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Engie has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares New Jersey Resources and Engie’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Jersey Resources 9.08% 18.96% 6.17%
Engie N/A N/A N/A

Insider & Institutional Ownership

64.1% of New Jersey Resources shares are held by institutional investors. Comparatively, 0.2% of Engie shares are held by institutional investors. 1.5% of New Jersey Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

New Jersey Resources beats Engie on 9 of the 14 factors compared between the two stocks.

About New Jersey Resources

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Midstream segments. The Natural Gas Distribution segment offers regulated retail natural gas services to approximately 529,800 residential and commercial customers in central and northern New Jersey; provides storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in commercial and residential solar projects located in New Jersey; and onshore wind projects in Montana, Iowa, Kansas, Wyoming, and Pennsylvania. The Energy Services segment provides unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Midstream segment invests in natural gas transportation and storage facilities. The company offers heating, ventilation, and cooling services; holds commercial real estate properties; and provides solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. New Jersey Resources Corporation was founded in 1922 and is based in Wall, New Jersey.

About Engie

Engie SA, formerly GDF Suez SA, is a France-based natural gas and electricity supplier. Its operations are organized in five business lines: Energy Europe, engaged in the production of electricity and distribution and supplying of gas in continental Europe; Energy International which supplies power within North and Latin America, the United Kingdom, Turkey, Middle East, Asia and Africa; Global Gas & LNG, which includes exploration and production of gas and oil, procurement and routing of gas and Liquefied Natural Gas (LNG) and supplying accounts in Europe; Infrastructures, which operates the transport, supply and storage of natural gas; and Energy Services, providing multi-technical services in the areas of engineering, installation or energy services. The Company operates through La Compagnie du Vent, CNN MCO, which manages of all types of vessels, Siradel SAS and Green Charge Networks LLC, a Santa Clara-based manufacturer of energy storage systems and EV-Box BV, among others.

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