MGE Energy (NASDAQ: MGEE) is one of 83 public companies in the “Electric Utilities” industry, but how does it contrast to its peers? We will compare MGE Energy to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares MGE Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MGE Energy 13.82% 10.60% 4.33%
MGE Energy Competitors -10.91% 3.28% 0.51%

Analyst Recommendations

This is a breakdown of recent ratings for MGE Energy and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGE Energy 0 0 0 0 N/A
MGE Energy Competitors 694 3242 2441 52 2.29

As a group, “Electric Utilities” companies have a potential upside of 5.71%. Given MGE Energy’s peers higher probable upside, analysts clearly believe MGE Energy has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares MGE Energy and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MGE Energy $558.93 million $178.68 million 29.39
MGE Energy Competitors $7.32 billion $2.16 billion 30.29

MGE Energy’s peers have higher revenue and earnings than MGE Energy. MGE Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

37.5% of MGE Energy shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 0.2% of MGE Energy shares are held by company insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

MGE Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, MGE Energy’s peers have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.

Dividends

MGE Energy pays an annual dividend of $1.29 per share and has a dividend yield of 2.0%. MGE Energy pays out 57.8% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.5% of their earnings in the form of a dividend. MGE Energy has raised its dividend for 41 consecutive years.

Summary

MGE Energy peers beat MGE Energy on 8 of the 12 factors compared.

MGE Energy Company Profile

MGE Energy, Inc. (MGE) is a public utility holding company. The Company operates through five segments: Regulated electric utility operations; Regulated gas utility operations; Nonregulated energy operations; Transmission investments, and All other. The Regulated electric utility operations segment is engaged in generating, purchasing and distributing electricity through Madison Gas and Electric Company (MGE). The Regulated gas utility operations segment is engaged in purchasing and distributing natural gas through MGE. The Nonregulated energy operations segment is engaged in owning and leasing electric generating capacity that assists MGE through MGE Energy’s subsidiaries MGE Power Elm Road, LLC and MGE Power West Campus, LLC. The Transmission investments segment represents its investment in American Transmission Company LLC and ATC Holdco, LLC. The All other segment is engaged in investing and financing in companies and property that relate to the regulated operations.

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