Genie Energy Ltd. (GNE) vs NorthWestern Corporation (NWE)

Genie Energy Ltd. and NorthWestern Corporation are both Utilities Regulated Electric companies. NorthWestern Corporation is the larger, with a market value of $4.5B against $439.5M — 10.3× the size. Genie Energy Ltd. trades at the lower P/E: 17.1× against 26.9×. NorthWestern Corporation grew revenue faster over the last twelve months: 10.7% against 10.0%. NorthWestern Corporation has the higher net margin (10.1% vs 5.05%) and the lower return on invested capital (3.13% vs 22.0%). Both pay a dividend; NorthWestern Corporation yields more (3.57% vs 1.79%). Across the 22 metrics below, Genie Energy Ltd. leads on 16 and NorthWestern Corporation on 6.

Valuation

Metric GNE NWE Utilities Regulated Electric median
P/E 17.11 26.88 19.47
P/S 0.87 2.72 2.78
P/B 1.71 1.59 1.77
Price to free cash flow 40.74 n/m 38.27
EV/EBITDA 11.08 13.88 12.25
EV/Sales 0.48 4.77 4.74
Earnings yield 5.85% 3.72% 5.02%
Free cash flow yield 2.45% (4.18%) (5.09%)

Profitability

Metric GNE NWE Utilities Regulated Electric median
Gross margin 25.33% 74.48% 66.28%
Operating margin 4.05% 18.84% 21.79%
Net margin 5.05% 10.13% 12.94%
Free cash flow margin 2.19% (11.36%) (11.51%)
Return on equity 11.47% 5.94% 9.75%
Return on assets 6.74% 2.04% 2.75%
Return on invested capital 22.04% 3.13% 3.87%

Growth

Metric GNE NWE Utilities Regulated Electric median
Revenue growth (TTM) 10.01% 10.69% 7.43%
EPS growth (last fiscal year) 95.65% (19.45%) 7.45%
Revenue growth, 5-year CAGR 7.06% 6.09% 6.75%
Net income growth, 5-year CAGR 15.51% 3.13% 6.44%

Health

Metric GNE NWE Utilities Regulated Electric median
Debt to equity 0.03 1.21 1.53
Current ratio 2.89 0.83 0.81
Net debt to EBITDA (7.07) 5.61 5.25

Dividend

Metric GNE NWE Utilities Regulated Electric median
Dividend yield 1.79% 3.57% 3.29%
Payout ratio 0.31 0.96 0.66

Size

Metric GNE NWE Utilities Regulated Electric median
Market cap 439.54m 4.54b 23.14b

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