Ameren (NYSE:AEE – Get Free Report) and OGE Energy (NYSE:OGE – Get Free Report) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Ameren and OGE Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ameren | 13.65% | 10.50% | 2.93% |
| OGE Energy | 13.98% | 9.99% | 3.48% |
Institutional and Insider Ownership
77.8% of Ameren shares are owned by institutional investors. Comparatively, 67.0% of OGE Energy shares are owned by institutional investors. 0.4% of Ameren shares are owned by insiders. Comparatively, 0.4% of OGE Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ameren | $7.96 billion | 2.44 | $1.07 billion | $4.27 | 17.33 |
| OGE Energy | $3.38 billion | 1.94 | $665.70 million | $2.19 | 14.91 |
Ameren has higher revenue and earnings than OGE Energy. OGE Energy is trading at a lower price-to-earnings ratio than Ameren, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Ameren has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Dividends
Ameren pays an annual dividend of $2.52 per share and has a dividend yield of 3.4%. OGE Energy pays an annual dividend of $1.66 per share and has a dividend yield of 5.1%. Ameren pays out 59.0% of its earnings in the form of a dividend. OGE Energy pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameren has increased its dividend for 10 consecutive years and OGE Energy has increased its dividend for 18 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Ameren and OGE Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ameren | 0 | 4 | 5 | 0 | 2.56 |
| OGE Energy | 0 | 5 | 2 | 0 | 2.29 |
Ameren currently has a consensus price target of $88.78, indicating a potential upside of 19.95%. OGE Energy has a consensus price target of $37.00, indicating a potential upside of 13.34%. Given Ameren’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ameren is more favorable than OGE Energy.
Summary
Ameren beats OGE Energy on 11 of the 16 factors compared between the two stocks.
About Ameren
Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in St. Louis, Missouri.
About OGE Energy
OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider that offers physical delivery and related services in the United States. It operates through Electric Company Operations and Natural Gas Midstream segments. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 889,000 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.
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