Head to Head Review: ENGIE (OTCMKTS:ENGIY) and RWE (OTCMKTS:RWEOY)

RWE (OTCMKTS:RWEOY) and ENGIE (OTCMKTS:ENGIY) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares RWE and ENGIE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RWE	$26.22 billion	1.28	$5.56 billion	$3.84	12.93
ENGIE	$79.88 billion	0.75	$4.44 billion	N/A	N/A

RWE has higher earnings, but lower revenue than ENGIE.

Profitability

This table compares RWE and ENGIE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RWE	11.32%	4.85%	1.75%
ENGIE	N/A	N/A	N/A

Risk and Volatility

RWE has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, ENGIE has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Dividends

RWE pays an annual dividend of $0.87 per share and has a dividend yield of 1.8%. ENGIE pays an annual dividend of $1.21 per share and has a dividend yield of 4.9%. RWE pays out 22.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RWE and ENGIE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE	0	1	3	1	3.00
ENGIE	0	1	2	1	3.00

RWE currently has a consensus target price of $53.30, indicating a potential upside of 7.31%. Given RWE’s higher probable upside, analysts plainly believe RWE is more favorable than ENGIE.

Summary

RWE beats ENGIE on 8 of the 11 factors compared between the two stocks.

About RWE

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.