Financial Review: PHX Minerals (NYSE:PHX) & RWE Aktiengesellschaft (OTCMKTS:RWEOY)

RWE Aktiengesellschaft (OTCMKTS:RWEOY) and PHX Minerals (NYSE:PHX) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

38.2% of PHX Minerals shares are held by institutional investors. 6.4% of PHX Minerals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for RWE Aktiengesellschaft and PHX Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE Aktiengesellschaft	0	1	0	1	3.00
PHX Minerals	0	0	2	0	3.00

PHX Minerals has a consensus price target of $4.90, indicating a potential upside of 37.64%. Given PHX Minerals’ higher possible upside, analysts plainly believe PHX Minerals is more favorable than RWE Aktiengesellschaft.

Risk and Volatility

RWE Aktiengesellschaft has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, PHX Minerals has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares RWE Aktiengesellschaft and PHX Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RWE Aktiengesellschaft	$30.91 billion	N/A	$1.57 billion	$4.12	8.10
PHX Minerals	$44.46 million	3.00	$13.92 million	$0.13	27.39

RWE Aktiengesellschaft has higher revenue and earnings than PHX Minerals. RWE Aktiengesellschaft is trading at a lower price-to-earnings ratio than PHX Minerals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RWE Aktiengesellschaft and PHX Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RWE Aktiengesellschaft	12.03%	8.27%	2.73%
PHX Minerals	12.33%	4.16%	3.12%

Dividends

RWE Aktiengesellschaft pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. PHX Minerals pays an annual dividend of $0.16 per share and has a dividend yield of 4.5%. RWE Aktiengesellschaft pays out 18.2% of its earnings in the form of a dividend. PHX Minerals pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

PHX Minerals beats RWE Aktiengesellschaft on 8 of the 15 factors compared between the two stocks.

About RWE Aktiengesellschaft

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

About PHX Minerals

PHX Minerals Inc. operates as a natural gas and oil mineral company in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The company sells its products to various purchasers, including pipeline and marketing companies. The company was formerly known as Panhandle Oil and Gas Inc. and changed its name to PHX Minerals Inc. in October 2020. PHX Minerals Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.