OGE Energy (NYSE:OGE) vs. Public Service Enterprise Group (NYSE:PEG) Critical Survey

OGE Energy (NYSE:OGE) and Public Service Enterprise Group (NYSE:PEG) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares OGE Energy and Public Service Enterprise Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OGE Energy	$3.29 billion	2.70	$441.50 million	$2.49	17.74
Public Service Enterprise Group	$11.13 billion	3.62	$1.77 billion	$3.96	20.39

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

Dividends

OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.8%. Public Service Enterprise Group pays an annual dividend of $2.52 per share and has a dividend yield of 3.1%. OGE Energy pays out 68.3% of its earnings in the form of a dividend. Public Service Enterprise Group pays out 63.6% 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. OGE Energy has increased its dividend for 18 consecutive years and Public Service Enterprise Group has increased its dividend for 14 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

71.8% of OGE Energy shares are owned by institutional investors. Comparatively, 73.3% of Public Service Enterprise Group shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by insiders. Comparatively, 0.2% of Public Service Enterprise Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares OGE Energy and Public Service Enterprise Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OGE Energy	15.28%	10.86%	3.62%
Public Service Enterprise Group	17.78%	12.08%	3.58%

Analyst Recommendations

This is a summary of current ratings and target prices for OGE Energy and Public Service Enterprise Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OGE Energy	0	5	5	0	2.50
Public Service Enterprise Group	0	6	6	1	2.62

OGE Energy presently has a consensus target price of $48.75, suggesting a potential upside of 10.39%. Public Service Enterprise Group has a consensus target price of $91.21, suggesting a potential upside of 12.94%. Given Public Service Enterprise Group’s stronger consensus rating and higher possible upside, analysts clearly believe Public Service Enterprise Group is more favorable than OGE Energy.

Risk & Volatility

OGE Energy has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Public Service Enterprise Group has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Summary

Public Service Enterprise Group beats OGE Energy on 13 of the 18 factors compared between the two stocks.

About OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy services provider in the United States. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 896,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.