Financial Review: Power Assets (OTCMKTS:HGKGY) and Genie Energy (NYSE:GNE)

Power Assets (OTCMKTS:HGKGY) and Genie Energy (NYSE:GNE) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Power Assets has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Genie Energy has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Insider & Institutional Ownership

49.1% of Genie Energy shares are owned by institutional investors. 1.0% of Power Assets shares are owned by insiders. Comparatively, 18.5% of Genie Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Power Assets pays an annual dividend of $0.48 per share and has a dividend yield of 6.6%. Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. Genie Energy pays out 61.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Power Assets and Genie Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Assets	0	0	0	0	0.00
Genie Energy	0	1	0	1	3.00

Profitability

This table compares Power Assets and Genie Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Assets	N/A	N/A	N/A
Genie Energy	3.22%	9.72%	5.45%

Valuation and Earnings

This table compares Power Assets and Genie Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Assets	$98.89 million	157.32	$800.08 million	N/A	N/A
Genie Energy	$501.97 million	0.77	$24.01 million	$0.49	29.88

Power Assets has higher earnings, but lower revenue than Genie Energy.

Summary

Genie Energy beats Power Assets on 8 of the 13 factors compared between the two stocks.

About Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.

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.