Financial Contrast: Genie Energy (NYSE:GNE) vs. Comp En De Mn Cemig ADS (NYSE:CIG)

Comp En De Mn Cemig ADS (NYSE:CIG) and Genie Energy (NYSE:GNE) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Comp En De Mn Cemig ADS and Genie Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comp En De Mn Cemig ADS	1	1	0	0	1.50
Genie Energy	0	1	0	0	2.00

Volatility & Risk

Comp En De Mn Cemig ADS has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500.

Profitability

This table compares Comp En De Mn Cemig ADS and Genie Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comp En De Mn Cemig ADS	9.45%	14.96%	6.69%
Genie Energy	1.00%	4.47%	2.16%

Insider & Institutional Ownership

49.2% of Genie Energy shares are owned by institutional investors. 17.4% of Genie Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Comp En De Mn Cemig ADS pays an annual dividend of $0.17 per share and has a dividend yield of 7.9%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Comp En De Mn Cemig ADS pays out 85.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genie Energy pays out 37.5% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Comp En De Mn Cemig ADS and Genie Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comp En De Mn Cemig ADS	$7.38 billion	N/A	$1.32 billion	$0.20	10.75
Genie Energy	$425.20 million	0.88	$12.59 million	$0.80	17.73

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

Summary

Comp En De Mn Cemig ADS beats Genie Energy on 7 of the 13 factors compared between the two stocks.

About Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

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.