Contrasting ENGIE (OTCMKTS:ENGIY) & Xcel Energy (NASDAQ:XEL)

Xcel Energy (NASDAQ:XEL) and ENGIE (OTCMKTS:ENGIY) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Xcel Energy has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, ENGIE has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xcel Energy	13.76%	10.46%	2.90%
ENGIE	N/A	N/A	N/A

Institutional and Insider Ownership

78.4% of Xcel Energy shares are owned by institutional investors. 0.1% of Xcel Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Xcel Energy and ENGIE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Energy	$14.67 billion	3.51	$2.02 billion	$3.42	24.13
ENGIE	$81.38 billion	0.92	$4.33 billion	N/A	N/A

ENGIE has higher revenue and earnings than Xcel Energy.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Xcel Energy and ENGIE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Energy	1	1	12	3	3.00
ENGIE	0	2	4	1	2.86

Xcel Energy presently has a consensus target price of $88.60, indicating a potential upside of 7.37%. Given Xcel Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Xcel Energy is more favorable than ENGIE.

Dividends

Xcel Energy pays an annual dividend of $2.28 per share and has a dividend yield of 2.8%. ENGIE pays an annual dividend of $1.21 per share and has a dividend yield of 3.9%. Xcel Energy pays out 66.7% of its earnings in the form of a dividend. Xcel Energy has increased its dividend for 22 consecutive years.

Summary

Xcel Energy beats ENGIE on 11 of the 16 factors compared between the two stocks.

About Xcel Energy

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.

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.