American Electric Power (NASDAQ:AEP – Get Free Report) and Genie Energy (NYSE:GNE – Get Free Report) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Dividends
American Electric Power pays an annual dividend of $3.80 per share and has a dividend yield of 3.2%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. American Electric Power pays out 55.4% of its earnings in the form of a dividend. Genie Energy pays out 31.9% 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. American Electric Power has raised its dividend for 15 consecutive years. American Electric Power is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
75.2% of American Electric Power shares are held by institutional investors. Comparatively, 49.2% of Genie Energy shares are held by institutional investors. 0.1% of American Electric Power shares are held by insiders. Comparatively, 17.4% of Genie Energy shares are held 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.
Risk and Volatility
Profitability
This table compares American Electric Power and Genie Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Electric Power | 17.23% | 11.29% | 3.06% |
| Genie Energy | 1.82% | 6.40% | 3.26% |
Earnings & Valuation
This table compares American Electric Power and Genie Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Electric Power | $20.67 billion | 3.11 | $2.97 billion | $6.86 | 17.53 |
| Genie Energy | $456.88 million | 0.88 | $12.59 million | $0.94 | 16.04 |
American Electric Power has higher revenue and earnings than Genie Energy. Genie Energy is trading at a lower price-to-earnings ratio than American Electric Power, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for American Electric Power and Genie Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Electric Power | 1 | 9 | 8 | 2 | 2.55 |
| Genie Energy | 0 | 1 | 0 | 0 | 2.00 |
American Electric Power currently has a consensus target price of $124.50, suggesting a potential upside of 3.53%. Given American Electric Power’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Electric Power is more favorable than Genie Energy.
Summary
American Electric Power beats Genie Energy on 15 of the 18 factors compared between the two stocks.
About American Electric Power
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
About Genie Energy
Genie Energy Ltd., through its subsidiaries, engages in the supply of electricity and natural gas to residential and small business customers in the United States and internationally. It operates in two segments, GRE and Genie Renewables. The company also develops, constructs, and operates solar energy projects for commercial and industrial customers, as well as its own portfolio; provides energy brokerage and advisory services; markets community solar energy solutions; and manufactures and distributes solar panel, as well as engages in solar installation design and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.
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