Critical Comparison: OGE Energy (OGE) and Enel Generacion Chile (EOCC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
OGE Energy 18.74% 10.80% 4.01%
Enel Generacion Chile 21.20% 24.58% 13.82%

Earnings and Valuation

This table compares OGE Energy and Enel Generacion Chile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OGE Energy $2.27 billion 3.77 $425.50 million $2.12 20.20
Enel Generacion Chile $2.45 billion 0.00 N/A N/A N/A

OGE Energy has higher earnings, but lower revenue than Enel Generacion Chile.

Dividends

OGE Energy pays an annual dividend of $1.46 per share and has a dividend yield of 3.4%. Enel Generacion Chile pays an annual dividend of $1.93 per share. OGE Energy pays out 68.9% of its earnings in the form of a dividend. OGE Energy has increased its dividend for 12 consecutive years and Enel Generacion Chile has increased its dividend for 2 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

68.2% of OGE Energy shares are held by institutional investors. Comparatively, 0.4% of Enel Generacion Chile shares are held by institutional investors. 0.4% of OGE Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

OGE Energy has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Enel Generacion Chile has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for OGE Energy and Enel Generacion Chile, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OGE Energy 1 4 0 0 1.80
Enel Generacion Chile 0 0 0 0 N/A

OGE Energy presently has a consensus price target of $37.67, indicating a potential downside of 12.06%.

Summary

Enel Generacion Chile beats OGE Energy on 6 of the 11 factors compared between the two stocks.

About OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that offers physical delivery and related services for electricity and natural gas primarily in the south central United States. The company operates in 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. This segment furnishes retail electric service in 267 communities and their contiguous rural and suburban areas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating facilities. The Natural Gas Midstream Operations segment is involved in gathering, processing, transporting, and storing natural gas; and the provision of crude oil gathering services, and interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, industrial end users, and natural gas marketers. As of December 31, 2017, the company owned and operated interconnected electric generation, transmission, and distribution system, including 10 generating stations with an aggregate capability of 6,304 megawatts; and a transmission system comprising 52 substations and 4,949 structure miles of lines in Oklahoma, and 7 substations and 277 structure miles of lines in Arkansas. Its distribution system consisted of 346 substations, 29,317 structure miles of overhead lines, 2,824 miles of underground conduit, and 10,875 miles of underground conductors in Oklahoma, as well as 30 substations, 2,785 structure miles of overhead lines, 282 miles of underground conduit, and 689 miles of underground conductors in Arkansas. OGE Energy Corp. was founded in 1995 and is headquartered in Oklahoma City, Oklahoma.

About Enel Generacion Chile

Enel Generación Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2017, it had 6,351 megawatts of installed capacity with 28 generation facilities and a total of 111 generation units. The company supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. It is also involved in exploitation and transportation of natural gas; and provision of engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.

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