Head-To-Head Survey: Korea Electric Power (NYSE:KEP) and Xcel Energy (NASDAQ:XEL)

Korea Electric Power (NYSE:KEP) and Xcel Energy (NASDAQ:XEL) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Korea Electric Power and Xcel Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Korea Electric Power	8.47%	19.00%	3.34%
Xcel Energy	13.76%	10.83%	2.95%

Valuation and Earnings

This table compares Korea Electric Power and Xcel Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Korea Electric Power	$68.46 billion	N/A	$2.44 billion	$4.56	4.71
Xcel Energy	$14.67 billion	3.29	$2.02 billion	$3.42	23.86

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

Volatility and Risk

Korea Electric Power has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Korea Electric Power and Xcel Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Korea Electric Power	0	1	1	0	2.50
Xcel Energy	1	0	13	3	3.06

Xcel Energy has a consensus price target of $88.13, indicating a potential upside of 8.02%. Given Xcel Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Xcel Energy is more favorable than Korea Electric Power.

Institutional and Insider Ownership

78.4% of Xcel Energy shares are held by institutional investors. 1.0% of Korea Electric Power shares are held by company insiders. Comparatively, 0.1% of Xcel Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Korea Electric Power pays an annual dividend of $0.05 per share and has a dividend yield of 0.2%. Xcel Energy pays an annual dividend of $2.28 per share and has a dividend yield of 2.8%. Korea Electric Power pays out 1.1% of its earnings in the form of a dividend. Xcel Energy pays out 66.7% 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. Xcel Energy has increased its dividend for 22 consecutive years. Xcel Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Xcel Energy beats Korea Electric Power on 9 of the 17 factors compared between the two stocks.

About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2022, the company had a total of 770 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,723 megawatts; transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 895 substations with an installed transformer capacity of 347,426 megavolt-amperes; and distribution system included 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also provides engineering and construction services for utility plant and others; utility plant maintenance, electric power information technology, resources development, facility maintenance, electric meter reading, and security services; and engages in nuclear fuel, fly ashes recycling, utility plants construction and operation, and wood pellet utilization businesses. Korea Electric Power Corporation was founded in 1898 and is headquartered in Naju-si, South Korea.

About Xcel Energy

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.