Genie Energy (NYSE:GNE – Get Free Report) and Iberdrola (OTCMKTS:IBDRY – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Dividends
Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Iberdrola pays an annual dividend of $2.99 per share and has a dividend yield of 3.0%. Genie Energy pays out 37.0% of its earnings in the form of a dividend. Iberdrola pays out 66.2% 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.
Volatility & Risk
Genie Energy has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Insider & Institutional Ownership
49.1% of Genie Energy shares are owned by institutional investors. Comparatively, 0.0% of Iberdrola shares are owned by institutional investors. 18.5% of Genie Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Genie Energy and Iberdrola”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genie Energy | $501.97 million | 0.88 | $24.01 million | $0.81 | 20.68 |
| Iberdrola | $51.52 billion | 3.18 | $7.11 billion | $4.52 | 21.70 |
Iberdrola has higher revenue and earnings than Genie Energy. Genie Energy is trading at a lower price-to-earnings ratio than Iberdrola, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Genie Energy and Iberdrola, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genie Energy | 0 | 2 | 0 | 0 | 2.00 |
| Iberdrola | 0 | 5 | 4 | 0 | 2.44 |
Profitability
This table compares Genie Energy and Iberdrola’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% |
| Iberdrola | 14.74% | 9.56% | 3.68% |
Summary
Iberdrola beats Genie Energy on 10 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 Iberdrola
Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.
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