MGE Energy (NASDAQ:MGEE) and Centuri (NYSE:CTRI) Critical Review

MGE Energy (NASDAQ:MGEE) and Centuri (NYSE:CTRI) are both mid-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for MGE Energy and Centuri, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGE Energy	1	2	0	0	1.67
Centuri	2	1	2	0	2.00

MGE Energy currently has a consensus price target of $76.50, suggesting a potential upside of 2.82%. Centuri has a consensus price target of $37.80, suggesting a potential upside of 23.42%. Given Centuri’s stronger consensus rating and higher possible upside, analysts clearly believe Centuri is more favorable than MGE Energy.

Earnings and Valuation

This table compares MGE Energy and Centuri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGE Energy	$743.65 million	3.68	$135.89 million	$3.90	19.08
Centuri	$2.98 billion	1.04	$22.40 million	$0.34	90.08

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

Insider and Institutional Ownership

52.6% of MGE Energy shares are held by institutional investors. 0.4% of MGE Energy shares are held by company insiders. Comparatively, 0.3% of Centuri 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGE Energy	18.61%	10.94%	4.68%
Centuri	0.98%	5.64%	1.81%

Volatility and Risk

MGE Energy has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Centuri has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Summary

MGE Energy beats Centuri on 8 of the 14 factors compared between the two stocks.

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.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.