Evergy (NASDAQ:EVRG – Get Free Report) and OGE Energy (NYSE:OGE – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Evergy and OGE Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evergy | 14.63% | 9.09% | 2.75% |
| OGE Energy | 14.44% | 9.48% | 3.24% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Evergy and OGE Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evergy | 0 | 3 | 8 | 0 | 2.73 |
| OGE Energy | 0 | 7 | 4 | 0 | 2.36 |
Dividends
Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.3%. OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.6%. Evergy pays out 73.7% of its earnings in the form of a dividend. OGE Energy pays out 74.9% 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. Evergy has increased its dividend for 20 consecutive years and OGE Energy has increased its dividend for 18 consecutive years.
Risk & Volatility
Evergy has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Insider & Institutional Ownership
87.2% of Evergy shares are owned by institutional investors. Comparatively, 71.8% of OGE Energy shares are owned by institutional investors. 1.5% of Evergy shares are owned by insiders. Comparatively, 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 stock will outperform the market over the long term.
Earnings & Valuation
This table compares Evergy and OGE Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evergy | $5.96 billion | 3.21 | $855.60 million | $3.77 | 22.02 |
| OGE Energy | $3.26 billion | 3.01 | $470.70 million | $2.27 | 20.90 |
Evergy has higher revenue and earnings than OGE Energy. OGE Energy is trading at a lower price-to-earnings ratio than Evergy, indicating that it is currently the more affordable of the two stocks.
Summary
Evergy beats OGE Energy on 14 of the 17 factors compared between the two stocks.
About Evergy
Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.
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.
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