Financial Analysis: Via Renewables (NASDAQ:VIA) & Exelon (NASDAQ:EXC)

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Via Renewables (NASDAQ:VIAGet Rating) and Exelon (NASDAQ:EXCGet Rating) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Via Renewables and Exelon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Via Renewables 6.33% 36.29% 7.02%
Exelon 8.15% 10.87% 2.83%

Valuation and Earnings

This table compares Via Renewables 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
Via Renewables $393.48 million 0.72 $5.20 million $1.14 6.93
Exelon $36.35 billion 1.26 $1.71 billion $2.65 17.63

Exelon has higher revenue and earnings than Via Renewables. Via Renewables is trading at a lower price-to-earnings ratio than Exelon, indicating that it is currently the more affordable of the two stocks.

Dividends

Via Renewables pays an annual dividend of $0.73 per share and has a dividend yield of 9.2%. Exelon pays an annual dividend of $1.35 per share and has a dividend yield of 2.9%. Via Renewables pays out 64.0% of its earnings in the form of a dividend. Exelon pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

16.9% of Via Renewables shares are owned by institutional investors. Comparatively, 80.4% of Exelon shares are owned by institutional investors. 66.1% of Via Renewables shares are owned by insiders. Comparatively, 0.2% of Exelon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Via Renewables and Exelon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Via Renewables 0 0 0 0 N/A
Exelon 0 6 5 0 2.45

Exelon has a consensus target price of $47.73, indicating a potential upside of 2.13%. Given Exelon’s higher possible upside, analysts clearly believe Exelon is more favorable than Via Renewables.

Volatility and Risk

Via Renewables has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Exelon has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

Exelon beats Via Renewables on 10 of the 15 factors compared between the two stocks.

Via Renewables Company Profile (Get Rating)

Via Renewables, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States. It operates in two segments, Retail Electricity and Retail Natural Gas. The Retail Electricity segment engages in the transmission and sale of electricity to residential and commercial customers. The Retail Natural Gas segment is involved in the transportation, distribution, and sale of natural gas to residential and commercial customers. As of March 2, 2022, the company operated in 101 utility service territories across 19 states and the District of Columbia. It has approximately 408,000 residential customer equivalents. The company was formerly known as Spark Energy, Inc. and changed its name to Via Renewables, Inc. in August 2021. Via Renewables, Inc. was founded in 1999 and is headquartered in Houston, Texas.

Exelon Company Profile (Get Rating)

Exelon Corporation, a utility services holding company, engages in the energy generation, delivery, and marketing businesses in the United States and Canada. It owns nuclear, fossil, wind, hydroelectric, biomass, and solar generating facilities. The company also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services. Additionally, it is involved in the purchase and regulated retail sale of electricity and natural gas; and transmission and distribution of electricity, and distribution of natural gas to retail customers. Further, the company offers support services, including legal, human resources, information technology, financial, supply management, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, cooperatives, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.



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