South Jersey Industries (SJI) and Engie (ENGIY) Critical Survey

South Jersey Industries (NYSE: SJI) and Engie (OTCMKTS:ENGIY) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

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This is a summary of recent ratings for South Jersey Industries and Engie, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
South Jersey Industries 0 5 2 0 2.29
Engie 0 1 0 0 2.00

South Jersey Industries presently has a consensus target price of $32.80, indicating a potential upside of 2.28%. Given South Jersey Industries’ stronger consensus rating and higher probable upside, analysts clearly believe South Jersey Industries is more favorable than Engie.

Earnings and Valuation

This table compares South Jersey Industries and Engie’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
South Jersey Industries $1.24 billion 2.21 -$3.49 million $1.23 26.07
Engie $73.46 billion 0.57 $1.61 billion N/A N/A

Engie has higher revenue and earnings than South Jersey Industries.

Dividends

South Jersey Industries pays an annual dividend of $1.12 per share and has a dividend yield of 3.5%. Engie pays an annual dividend of $0.33 per share and has a dividend yield of 1.9%. South Jersey Industries pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

South Jersey Industries has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Engie has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Profitability

This table compares South Jersey Industries and Engie’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
South Jersey Industries 5.23% 11.33% 3.70%
Engie N/A N/A N/A

Institutional & Insider Ownership

66.3% of South Jersey Industries shares are held by institutional investors. Comparatively, 0.2% of Engie shares are held by institutional investors. 0.6% of South Jersey Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

South Jersey Industries beats Engie on 10 of the 14 factors compared between the two stocks.

About South Jersey Industries

South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services. The company engages in the purchase, transmission, and sale of natural gas. It also sells natural gas and pipeline transportation capacity on a wholesale basis to residential, commercial, and industrial customers on the interstate pipeline system, as well as transports natural gas, which is purchased directly from producers or suppliers to their customers. As of December 31, 2017, the company had approximately 146.2 miles of mains in the transmission system and 6,645 miles of mains in the distribution system; and served 383,633 residential, commercial, and industrial customers in southern New Jersey. In addition, it markets natural gas storage, commodity, and transportation assets on a wholesale basis for energy marketers, electric and gas utilities, power plants, and natural gas producers in the mid-Atlantic, Appalachian, and southern regions of the United States. Further, the company develops, owns, and operates energy projects comprising natural gas fueled combined heating, cooling and power, and landfill gas-to-energy production facilities, as well as solar-generation sites. Additionally, it owns oil, gas, and mineral rights in the Marcellus Shale region of Pennsylvania; acquires and markets natural gas and electricity to retail end users, as well as provides total energy management services; and services residential and small commercial HVAC systems, and installs small commercial HVAC systems, as well as provides plumbing services and services appliances. South Jersey Industries, Inc. was founded in 1910 and is headquartered in Folsom, New Jersey.

About Engie

ENGIE SA engages in power, natural gas, and energy services businesses. The company operates through North America, Latin America, Africa/Asia, Benelux, France, Europe excluding France & Benelux, Infrastructures Europe, GEM & LNG, and Other segments. It engages in the generation and sale of power through nuclear, thermal, and biomass resources; and seawater desalination activities, as well as offers engineering services in the areas of energy, hydraulics, and infrastructure. The company also provides energy sales and services for buildings and industry, cities and regions, and major infrastructures, as well as to individual and professional customers; and operates natural gas transportation, storage, and distribution networks and facilities, and LNG terminals primarily in France and Germany, as well as sells access rights to these infrastructures to third parties. In addition, it is involved in the development, construction, financing, operation, and maintenance of various renewable power generation assets, including hydraulic, wind, and photovoltaic; design, financing, building, and operation of decentralized energy production and distribution facilities; and design of cryogenic membrane confinement systems for sea transportation and storage of LNG on land and at sea. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. ENGIE SA was founded in 1880 and is headquartered in Courbevoie, France.