Analyzing WEC Energy Group (WEC) & The Competition

WEC Energy Group (NYSE: WEC) is one of 85 public companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare WEC Energy Group to similar businesses based on the strength of its institutional ownership, risk, earnings, valuation, dividends, analyst recommendations and profitability.

Valuation & Earnings

This table compares WEC Energy Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WEC Energy Group $7.61 billion $2.51 billion 21.29
WEC Energy Group Competitors $7.19 billion $2.12 billion 30.82

WEC Energy Group has higher revenue and earnings than its peers. WEC Energy Group 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 and Insider Ownership

70.2% of WEC Energy Group shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 1.0% of WEC Energy Group 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, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
WEC Energy Group 12.72% 10.75% 3.23%
WEC Energy Group Competitors -10.82% 3.51% 0.54%

Dividends

WEC Energy Group pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. WEC Energy Group pays out 68.4% 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 103.7% of their earnings in the form of a dividend. WEC Energy Group has increased its dividend for 6 consecutive years. WEC Energy Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

WEC Energy Group has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, WEC Energy Group’s peers have a beta of 0.70, suggesting that their average stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for WEC Energy Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEC Energy Group 1 5 1 0 2.00
WEC Energy Group Competitors 505 2861 2307 40 2.33

WEC Energy Group presently has a consensus price target of $62.50, indicating a potential downside of 3.45%. As a group, “Electric Utilities” companies have a potential upside of 6.14%. Given WEC Energy Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe WEC Energy Group has less favorable growth aspects than its peers.

Summary

WEC Energy Group beats its peers on 8 of the 15 factors compared.

About WEC Energy Group

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.

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