Contrasting WEC Energy Group (WEC) and UNITIL Corporation (UTL)
WEC Energy Group (NYSE: WEC) and UNITIL Corporation (NYSE:UTL) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
This is a breakdown of recent ratings and recommmendations for WEC Energy Group and UNITIL Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WEC Energy Group||1||6||1||0||2.00|
WEC Energy Group presently has a consensus price target of $63.14, suggesting a potential downside of 7.93%. UNITIL Corporation has a consensus price target of $47.00, suggesting a potential downside of 9.75%. Given WEC Energy Group’s higher possible upside, equities analysts clearly believe WEC Energy Group is more favorable than UNITIL Corporation.
Earnings & Valuation
This table compares WEC Energy Group and UNITIL Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|WEC Energy Group||$7,472.30||2.90||$940.20||$3.04||22.56|
WEC Energy Group has higher revenue and earnings than UNITIL Corporation. WEC Energy Group is trading at a lower price-to-earnings ratio than UNITIL Corporation, indicating that it is currently the more affordable of the two stocks.
WEC Energy Group pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. UNITIL Corporation pays an annual dividend of $1.44 per share and has a dividend yield of 2.8%. WEC Energy Group pays out 68.4% of its earnings in the form of a dividend. UNITIL Corporation pays out 72.0% 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. WEC Energy Group has increased its dividend for 2 consecutive years and UNITIL Corporation has increased its dividend for 6 consecutive years. WEC Energy Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
WEC Energy Group has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, UNITIL Corporation has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Insider and Institutional Ownership
70.4% of WEC Energy Group shares are owned by institutional investors. Comparatively, 58.8% of UNITIL Corporation shares are owned by institutional investors. 1.0% of WEC Energy Group shares are owned by insiders. Comparatively, 2.5% of UNITIL Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares WEC Energy Group and UNITIL Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WEC Energy Group||12.79%||10.62%||3.18%|
WEC Energy Group beats UNITIL Corporation on 12 of the 16 factors compared between the two stocks.
WEC Energy Group Company Profile
WEC Energy Group, Inc. was a diversified holding company with natural gas and electric utility operations, an approximately 60% equity ownership interest in American Transmission Company LLC, and non-utility electric operations through its We Power business, as of December 31, 2016. Its segments include Wisconsin; Illinois; Other States; Electric Transmission; We Power, and Corporate and Other. Wisconsin includes the electric and natural gas utility operations of Wisconsin Electric Power Company, Wisconsin Gas LLC, and Wisconsin Public Service Corporation, including WE’s and WPS’s electric and natural gas operations in the state of Michigan. Illinois includes the natural gas utility and non-utility operations of The Peoples Gas Light and Coke Company and North Shore Gas Company. Other states includes the natural gas utility and non-utility operations of Minnesota Energy Resources Corporation and Michigan Gas Utilities Corporation.
UNITIL Corporation Company Profile
Unitil Corporation is a public utility holding company. The Company’s principal business is the local distribution of electricity in the southeastern seacoast and state capital regions of New Hampshire and the greater Fitchburg area of north central Massachusetts and the local distribution of natural gas in southeastern New Hampshire, portions of southern Maine to the Lewiston-Auburn area and in the greater Fitchburg area of north central Massachusetts. Its segments include utility gas operations, utility electric operations and non-regulated. Its operations include natural gas operations; natural gas distribution utility operations; gas transmission pipeline operations; electric distribution utility operations, and non-regulated and other non-utility operations. As of December 31, 2016, it was engaged in the distribution of electricity and natural gas to approximately 184,200 customers throughout its service territories in the states of New Hampshire, Massachusetts and Maine.
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