SCANA (NYSE: SCG) and MGE Energy (NASDAQ:MGEE) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Valuation & Earnings
This table compares SCANA and MGE Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SCANA||$4.41 billion||1.21||-$119.00 million||($0.83)||-45.08|
|MGE Energy||$563.10 million||3.44||$97.60 million||$2.82||19.84|
Risk & Volatility
SCANA has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.
This table compares SCANA and MGE Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SCANA pays an annual dividend of $2.45 per share and has a dividend yield of 6.5%. MGE Energy pays an annual dividend of $1.29 per share and has a dividend yield of 2.3%. SCANA pays out -295.2% of its earnings in the form of a dividend. MGE Energy pays out 45.7% 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. SCANA has raised its dividend for 42 consecutive years and MGE Energy has raised its dividend for 18 consecutive years. SCANA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
70.3% of SCANA shares are held by institutional investors. Comparatively, 39.1% of MGE Energy shares are held by institutional investors. 0.4% of SCANA 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 will outperform the market over the long term.
This is a summary of recent recommendations and price targets for SCANA and MGE Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SCANA currently has a consensus target price of $54.07, indicating a potential upside of 44.50%. Given SCANA’s higher probable upside, equities research analysts clearly believe SCANA is more favorable than MGE Energy.
SCANA beats MGE Energy on 9 of the 16 factors compared between the two stocks.
SCANA Company Profile
SCANA Corporation is a holding company. The Company, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity in South Carolina. The Company operates through segments, including Electric Operations, Gas Distribution, Gas Marketing and All Other. The Company is engaged in the purchase, transmission and sale of natural gas in North Carolina and South Carolina. The Electric Operations segment generates, transmits and distributes electricity. The Company’s regulated businesses include subsidiaries, such as South Carolina Electric & Gas Company (SCE&G), South Carolina Fuel Company, Inc. (Fuel Company), South Carolina Generating Company, Inc. (GENCO) and Public Service Company of North Carolina, Incorporated (PSNC Energy). The Company’s nonregulated businesses include subsidiaries, such as SCANA Energy Marketing, Inc. (SCANA Energy), ServiceCare, Inc., SCANA Services, Inc. and SCANA Corporate Security Services, Inc.
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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