OGE Energy (NYSE: OGE) and UIL (NYSE:UIL) are both mid-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
63.0% of OGE Energy shares are held by institutional investors. 0.5% of OGE Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares OGE Energy and UIL’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OGE Energy||$2.26 billion||2.81||$619.00 million||$1.87||17.00|
OGE Energy has higher revenue and earnings than UIL. OGE Energy is trading at a lower price-to-earnings ratio than UIL, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for OGE Energy and UIL, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OGE Energy currently has a consensus price target of $36.50, suggesting a potential upside of 14.82%. Given OGE Energy’s higher possible upside, equities analysts clearly believe OGE Energy is more favorable than UIL.
This table compares OGE Energy and UIL’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
OGE Energy pays an annual dividend of $1.33 per share and has a dividend yield of 4.2%. UIL does not pay a dividend. OGE Energy pays out 71.1% of its earnings in the form of a dividend. OGE Energy has increased its dividend for 11 consecutive years.
OGE Energy beats UIL on 10 of the 13 factors compared between the two stocks.
About OGE Energy
OGE Energy Corp. (OGE Energy) is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company operates through two segments: electric utility and natural gas midstream operations. The electric utility segment generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are conducted through Oklahoma Gas and Electric Company (OG&E). OG&E is an electric utility in Oklahoma and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. The natural gas midstream operations segment represents the Company’s investment in Enable Midstream Partners, LP (Enable) through subsidiaries, and ultimately OGE Enogex Holdings LLC (OGE Holdings). Enable’s assets and operations are organized into two segments: gathering and processing, and transportation and storage.
UIL Holdings Corporation (UIL Holdings) is engaged in the ownership of its operating regulated utility businesses. The utility businesses consist of the electric distribution and transmission operations of The United Illuminating Company (UI) and the natural gas transportation, distribution and sales operations of The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG) and The Berkshire Gas Company. The Company operates in two segments: Electric Distribution and Transmission, which is engaged in purchase, transmission, distribution and sale of electricity for residential, commercial and industrial purposes, and Gas Distribution, which is engaged in natural gas transportation, distribution and sales operations.
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