ENGIE (OTCMKTS:ENGIY) versus FirstEnergy (NYSE:FE) Head to Head Contrast

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

Risk and Volatility

ENGIE has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares ENGIE and FirstEnergy’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
FirstEnergy	6.76%	10.50%	2.69%

Insider and Institutional Ownership

89.4% of FirstEnergy shares are owned by institutional investors. 0.1% of FirstEnergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares ENGIE and FirstEnergy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENGIE	$81.38 billion	1.04	$4.33 billion	N/A	N/A
FirstEnergy	$15.09 billion	1.92	$1.02 billion	$1.76	28.47

ENGIE has higher revenue and earnings than FirstEnergy.

Dividends

ENGIE pays an annual dividend of $1.21 per share and has a dividend yield of 3.6%. FirstEnergy pays an annual dividend of $1.78 per share and has a dividend yield of 3.6%. FirstEnergy pays out 101.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FirstEnergy has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for ENGIE and FirstEnergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENGIE	0	4	4	1	2.67
FirstEnergy	0	7	8	0	2.53

FirstEnergy has a consensus target price of $50.57, indicating a potential upside of 0.93%. Given FirstEnergy’s higher probable upside, analysts plainly believe FirstEnergy is more favorable than ENGIE.

Summary

FirstEnergy beats ENGIE on 10 of the 16 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 FirstEnergy

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.