Algonquin Power & Utilities (NYSE:AQN) and Genie Energy (NYSE:GNE) Critical Survey

Algonquin Power & Utilities (NYSE:AQN) and Genie Energy (NYSE:GNE) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Dividends

Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.8%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. Algonquin Power & Utilities pays out -14.4% of its earnings in the form of a dividend. Genie Energy pays out 214.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Algonquin Power & Utilities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

62.3% of Algonquin Power & Utilities shares are owned by institutional investors. Comparatively, 49.2% of Genie Energy shares are owned by institutional investors. 0.1% of Algonquin Power & Utilities shares are owned by company insiders. Comparatively, 17.4% of Genie Energy shares are owned by company 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.

Profitability

This table compares Algonquin Power & Utilities and Genie Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Algonquin Power & Utilities	-57.66%	4.76%	1.69%
Genie Energy	1.82%	6.40%	3.26%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Algonquin Power & Utilities and Genie Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Algonquin Power & Utilities	0	11	0	0	2.00
Genie Energy	0	0	0	0	0.00

Algonquin Power & Utilities presently has a consensus target price of $6.34, indicating a potential upside of 15.92%. Given Algonquin Power & Utilities’ stronger consensus rating and higher probable upside, equities analysts clearly believe Algonquin Power & Utilities is more favorable than Genie Energy.

Volatility & Risk

Algonquin Power & Utilities has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Valuation & Earnings

This table compares Algonquin Power & Utilities and Genie Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Algonquin Power & Utilities	$2.32 billion	1.81	-$1.38 billion	($1.80)	-3.04
Genie Energy	$425.20 million	0.94	$12.59 million	$0.14	106.46

Genie Energy has lower revenue, but higher earnings than Algonquin Power & Utilities. Algonquin Power & Utilities 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

Algonquin Power & Utilities beats Genie Energy on 8 of the 15 factors compared between the two stocks.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.

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.