Head-To-Head Analysis: MGE Energy (NASDAQ:MGEE) vs. Evergy (NASDAQ:EVRG)

Evergy (NASDAQ:EVRG) and MGE Energy (NASDAQ:MGEE) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Evergy and MGE Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evergy	14.45%	8.66%	2.66%
MGE Energy	18.55%	10.65%	4.67%

Dividends

Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.8%. MGE Energy pays an annual dividend of $1.90 per share and has a dividend yield of 2.4%. Evergy pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGE Energy pays out 51.5% of its earnings in the form of a dividend. Evergy has increased its dividend for 20 consecutive years and MGE Energy has increased its dividend for 49 consecutive years.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evergy	0	2	8	1	2.91
MGE Energy	1	2	0	0	1.67

Evergy currently has a consensus price target of $82.75, suggesting a potential upside of 13.23%. MGE Energy has a consensus price target of $79.00, suggesting a potential upside of 0.71%. Given Evergy’s stronger consensus rating and higher possible upside, analysts clearly believe Evergy is more favorable than MGE Energy.

Valuation and Earnings

This table compares Evergy and MGE Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evergy	$5.85 billion	2.88	$873.50 million	$3.65	20.02
MGE Energy	$676.94 million	4.23	$120.57 million	$3.69	21.26

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

Volatility & Risk

Evergy has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

87.2% of Evergy shares are held by institutional investors. Comparatively, 52.6% of MGE Energy shares are held by institutional investors. 1.4% of Evergy shares are held by company insiders. Comparatively, 0.2% of MGE Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.

About MGE Energy

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.