Head to Head Analysis: Enel (OTCMKTS:ENLAY) versus Genie Energy (NYSE:GNE)

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

Volatility and Risk

Genie Energy has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Enel has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

49.1% of Genie Energy shares are held by institutional investors. 18.5% of Genie Energy shares are held 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.

Valuation & Earnings

This table compares Genie Energy and Enel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genie Energy	$501.97 million	0.78	$24.01 million	$0.81	18.32
Enel	$90.88 billion	1.22	$4.82 billion	$0.77	14.19

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

Dividends

Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. Enel pays an annual dividend of $0.29 per share and has a dividend yield of 2.7%. Genie Energy pays out 37.0% of its earnings in the form of a dividend. Enel pays out 37.7% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genie Energy	5.05%	12.80%	7.82%
Enel	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Genie Energy and Enel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genie Energy	0	2	0	0	2.00
Enel	2	5	1	0	1.88

Summary

Genie Energy beats Enel on 9 of the 15 factors compared between the two stocks.

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.

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.