OGE Energy (NYSE:OGE – Get Free Report) and Exelon (NASDAQ:EXC – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
71.8% of OGE Energy shares are owned by institutional investors. Comparatively, 80.9% of Exelon shares are owned by institutional investors. 0.6% of OGE Energy shares are owned by company insiders. Comparatively, 0.1% of Exelon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for OGE Energy and Exelon, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OGE Energy | 0 | 6 | 4 | 0 | 2.40 |
| Exelon | 1 | 13 | 4 | 0 | 2.17 |
Volatility and Risk
OGE Energy has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Exelon has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.
Dividends
OGE Energy pays an annual dividend of $1.70 per share and has a dividend yield of 3.5%. Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 3.6%. OGE Energy pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon pays out 61.5% of its earnings in the form of a dividend. OGE Energy has raised its dividend for 18 consecutive years and Exelon has raised its dividend for 3 consecutive years. Exelon is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares OGE Energy and Exelon’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OGE Energy | 14.03% | 9.47% | 3.20% |
| Exelon | 11.21% | 9.83% | 2.44% |
Valuation and Earnings
This table compares OGE Energy and Exelon”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OGE Energy | $3.26 billion | 3.06 | $470.70 million | $2.24 | 21.61 |
| Exelon | $24.26 billion | 1.97 | $2.77 billion | $2.73 | 17.08 |
Exelon has higher revenue and earnings than OGE Energy. Exelon is trading at a lower price-to-earnings ratio than OGE Energy, indicating that it is currently the more affordable of the two stocks.
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.
About Exelon
Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.
Receive News & Ratings for OGE Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for OGE Energy and related companies with MarketBeat.com's FREE daily email newsletter.
