Analyzing WEC Energy Group (WEC) and its Peers

WEC Energy Group (NYSE: WEC) is one of 83 publicly-traded companies in the “Electric Utilities” industry, but how does it contrast to its rivals? We will compare WEC Energy Group to similar businesses based off the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Dividends

WEC Energy Group pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. 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 3.1% and pay out 104.0% of their earnings in the form of a dividend. WEC Energy Group has increased its dividend for 6 consecutive years.

Valuation & Earnings

This table compares WEC Energy Group and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WEC Energy Group $7.61 billion $2.51 billion 21.92
WEC Energy Group Competitors $7.29 billion $2.15 billion 30.46

WEC Energy Group has higher revenue and earnings than its rivals. WEC Energy Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for WEC Energy Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEC Energy Group 1 5 1 0 2.00
WEC Energy Group Competitors 690 3216 2424 52 2.29

WEC Energy Group currently has a consensus price target of $62.50, indicating a potential downside of 6.21%. All “Electric Utilities” companies have a potential upside of 3.51%. Given WEC Energy Group’s rivals stronger consensus rating and higher probable upside, analysts plainly believe WEC Energy Group has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

70.8% of WEC Energy Group shares are held by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are held by institutional investors. 1.0% of WEC Energy Group shares are held by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

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

Profitability

This table compares WEC Energy Group and its rivals’ 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 -10.84% 3.16% 0.46%

Summary

WEC Energy Group rivals beat WEC Energy Group 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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