Top 15 Utilities Stocks by Marvin's Opportunity Score
Marvin's rules picked 15 Utilities stocks that pass a minimum size and Business Quality bar, ranked by Opportunity score. Genie Energy, New Jersey Resources and Essential Utilities lead the list.
Utilities companies supply basics such as electricity, gas and water. Many are regulated, so their results can look steadier than those of other sectors. This list shows the 15 Utilities stocks that Marvin's rules ranked highest on Opportunity, after screening for size and Business Quality.
Each stock below shows a few figures: revenue growth, margins, return on equity and debt. Margins show how much of each sales dollar is left as profit. Return on equity shows how well a company uses shareholder money. The debt-to-equity ratio shows how much a company borrows compared with what its owners have put in. Utilities often carry real debt, so that figure deserves attention.
Treat this as a starting point for research, not a verdict. Scores compare each company only with others in its own industry, and some figures are missing for certain stocks. Missing data is flagged in the notes below.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size, then kept those in the Utilities sector with a Business Quality score above a minimum bar. It capped how many stocks from any one industry could appear, and ranked the rest with the highest Opportunity score first. All scores are relative to each company's own industry, so a water company is compared with other water companies, and a gas company with other gas companies. A high score does not mean a company beats the whole sector.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Utilities sector, highest Opportunity score first, among companies with a Business Quality score of at least 50; at most 4 per industry.
The stocks, one by one
Genie Energy Ltd. GNE
Genie Energy has the top Opportunity score at 95, helped by revenue growth of 18.1% and very low debt, with a debt-to-equity ratio of 0.03. Caution: its operating margin of 4.1% is thin, and free cash flow margin is not available.
New Jersey Resources Corporation NJR
New Jersey Resources shows revenue growth of 13.4% and a solid operating margin of 24.8%, with return on equity of 13.9%. Caution: debt-to-equity of 1.37 means it relies on borrowing more than several others on this list.
Essential Utilities, Inc. WTRG
Essential Utilities combines growth of 18.6% with a strong operating margin of 35.1%, which suggests it keeps a good share of sales as profit. Caution: return on equity is a modest 7.9%, and debt-to-equity is 1.21.
DTE Energy Company DTE
DTE Energy had revenue growth of 26.9%, the strongest among the regulated electric names here, and an operating margin of 13.1%. Return on equity is 10.3%. Caution: debt-to-equity of 2.07 is among the higher figures on this list.
Artesian Resources Corporation ARTNA
Artesian Resources has a healthy operating margin of 25.0% and moderate debt, with debt-to-equity of 0.71. Caution: growth was only 4.6%, and its free cash flow margin of -15.5% shows it spent more cash than it generated.
DTE Energy Company 2021 Series DTG
This DTE Energy 2021 Series entry carries the same company figures as DTE: growth of 26.9%, operating margin of 13.1% and return on equity of 10.3%. Caution: debt-to-equity of 2.07 is high, and its overall score of 71 is lower than DTE's.
Unitil Corporation UTL
Unitil scores well on Business Quality at 82, with an operating margin of 18.9% and growth of 8.3%. Caution: free cash flow margin is negative at -7.6%, and debt-to-equity of 1.50 is on the higher side.
DTE Energy Company 2020 Series DTB
This DTE Energy 2020 Series entry shows the same company figures as DTE: growth of 26.9%, operating margin of 13.1% and return on equity of 10.3%. Caution: debt-to-equity of 2.07 is high, and its Business Quality score of 66 is lower than DTE's.
H2O America HTO
H2O America has a good operating margin of 21.9% and growth of 7.0%, with debt-to-equity of 1.02. Caution: return on equity is just 5.7%, the lowest among the regulated utilities here, and its Business Quality score only just clears the minimum bar.
American States Water Company AWR
American States Water has the highest overall score, 95, and a Business Quality score of 96. Its operating margin is 31.8% and return on equity is 12.8%. Caution: its Opportunity score of 82 is lower than most stocks above it, and free cash flow margin is slim at 3.0%.
ONE Gas, Inc. OGS
ONE Gas has a high Business Quality score of 87, with return on equity of 8.1% and debt-to-equity of 0.96, which is moderate. Caution: growth and margin figures are not available, so its profitability is harder to judge, and its Opportunity score is 73.
Avista Corporation AVA
Avista has an operating margin of 18.8% and return on equity of 8.0%. Caution: revenue growth was only 1.3%, free cash flow margin is negative at -5.4%, and its debt-to-equity figure is not available.
Talen Energy Corporation TLN
Talen Energy grew revenue by 22.0% and has a free cash flow margin of 16.5%. Caution: operating margin is thin at 2.6%, return on equity is negative at -11.4%, and debt-to-equity of 5.92 is the highest on this list.
UGI Corporation UGI
UGI has a Business Quality score of 81, return on equity of 12.9% and an operating margin of 16.2%, which suggest steady profitability. Caution: revenue growth was only 1.1%, and its Opportunity score of 60 is the second lowest here.
Chesapeake Utilities Corporation CPK
Chesapeake Utilities grew revenue by 18.1% and has a strong operating margin of 27.3%. Caution: free cash flow margin is negative at -19.5%, and its overall score of 54 is the lowest of the 15.
Common questions
What does the Opportunity score mean?
It is one of Marvin's scores, and it compares a company with other companies in its own industry today. A higher score ranks higher on this list. It is not a prediction about future results.
Why does DTE Energy appear more than once?
Three entries on the list are tied to DTE Energy Company: DTE, DTG and DTB. They share the same financial figures, such as growth, margins, return on equity and debt. Their Marvin scores differ, which is why each is ranked separately.
Are utilities stocks always steady?
Not always. Many utilities are regulated and sell services people need, which can make revenue more stable. But they often carry significant debt, and some, like independent power producers, can be more volatile. Checking debt, margins and cash flow helps.
Keep reading
- Top 15 Utilities Stocks by Marvin Scores
- Top 15 Utilities Stocks With the Strongest Businesses
- Top 15 Regulated Electric Stocks
- Top 20 Small-Cap Stocks Ranked by Marvin Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.