Head-To-Head Analysis: Eversource Energy (NYSE:ES) versus ENGIE (OTCMKTS:ENGIY)

ENGIE (OTCMKTS:ENGIY) and Eversource Energy (NYSE:ES) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

80.0% of Eversource Energy shares are owned by institutional investors. 0.2% of Eversource Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

ENGIE pays an annual dividend of $1.21 per share and has a dividend yield of 5.5%. Eversource Energy pays an annual dividend of $3.01 per share and has a dividend yield of 4.5%. Eversource Energy pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy has increased its dividend for 2 consecutive years.

Profitability

This table compares ENGIE and Eversource Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENGIE	N/A	N/A	N/A
Eversource Energy	6.60%	11.10%	2.83%

Valuation & Earnings

This table compares ENGIE and Eversource Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENGIE	$79.88 billion	0.67	$4.44 billion	N/A	N/A
Eversource Energy	$11.90 billion	2.05	$811.65 million	$2.33	28.52

ENGIE has higher revenue and earnings than Eversource Energy.

Volatility and Risk

ENGIE has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Eversource Energy has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for ENGIE and Eversource Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENGIE	0	1	3	1	3.00
Eversource Energy	3	4	3	0	2.00

Eversource Energy has a consensus target price of $65.5556, suggesting a potential downside of 1.35%. Given Eversource Energy’s higher possible upside, analysts clearly believe Eversource Energy is more favorable than ENGIE.

Summary

Eversource Energy beats ENGIE on 8 of the 15 factors compared between the two stocks.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.