OGE Energy (NYSE:OGE – Get Free Report) and Alaska Power & Telephone (OTCMKTS:APTL – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Dividends
OGE Energy pays an annual dividend of $1.68 per share and has a dividend yield of 3.9%. Alaska Power & Telephone pays an annual dividend of $1.57 per share and has a dividend yield of 2.9%. OGE Energy pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alaska Power & Telephone pays out 26.7% of its earnings in the form of a dividend.
Insider and Institutional Ownership
71.8% of OGE Energy shares are held by institutional investors. 0.5% of OGE Energy shares are held 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 Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
OGE Energy | 0 | 2 | 2 | 0 | 2.50 |
Alaska Power & Telephone | 0 | 0 | 0 | 0 | 0.00 |
OGE Energy presently has a consensus price target of $45.00, indicating a potential upside of 4.30%. Given OGE Energy’s stronger consensus rating and higher probable upside, analysts clearly believe OGE Energy is more favorable than Alaska Power & Telephone.
Volatility & Risk
OGE Energy has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Alaska Power & Telephone has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Earnings & Valuation
This table compares OGE Energy and Alaska Power & Telephone”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
OGE Energy | $2.67 billion | 3.24 | $416.80 million | $1.93 | 22.35 |
Alaska Power & Telephone | $64.21 million | 1.01 | $6.15 million | $5.88 | 9.27 |
OGE Energy has higher revenue and earnings than Alaska Power & Telephone. Alaska Power & Telephone is trading at a lower price-to-earnings ratio than OGE Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OGE Energy and Alaska Power & Telephone’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
OGE Energy | 13.89% | 8.59% | 2.96% |
Alaska Power & Telephone | 10.95% | N/A | N/A |
Summary
OGE Energy beats Alaska Power & Telephone on 14 of the 16 factors compared between 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 Alaska Power & Telephone
Alaska Power & Telephone Company provides energy, telecommunications, and broadband services to the residents, businesses, and communities of rural Alaska. The company operates through Energy and Telecom divisions. It generates energy using hydro and fossil-fuels. In addition, the company provides voice, as well as broadband services. Alaska Power & Telephone Company was founded in 1957 and is headquartered in Ketchikan, Washington.
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