Head-To-Head Analysis: Iberdrola (OTCMKTS:IBDRY) and OGE Energy (NYSE:OGE)

Iberdrola (OTCMKTS:IBDRY) and OGE Energy (NYSE:OGE) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Iberdrola and OGE Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	1	4	2	1	2.38
OGE Energy	0	5	6	0	2.55

OGE Energy has a consensus target price of $48.11, suggesting a potential downside of 2.54%. Given OGE Energy’s stronger consensus rating and higher possible upside, analysts clearly believe OGE Energy is more favorable than Iberdrola.

Risk and Volatility

Iberdrola has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Iberdrola shares are owned by institutional investors. Comparatively, 71.8% of OGE Energy shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Iberdrola pays an annual dividend of $1.80 per share and has a dividend yield of 1.9%. OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.4%. Iberdrola pays out 43.0% of its earnings in the form of a dividend. OGE Energy pays out 73.6% 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 raised its dividend for 18 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Iberdrola and OGE Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	13.74%	10.24%	3.92%
OGE Energy	14.44%	9.89%	3.32%

Earnings and Valuation

This table compares Iberdrola and OGE Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$51.52 billion	3.13	$7.11 billion	$4.19	22.76
OGE Energy	$3.26 billion	3.12	$470.70 million	$2.31	21.37

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

Summary

Iberdrola beats OGE Energy on 10 of the 18 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

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.