WEC Energy Group (NYSE:WEC) versus Iberdrola (OTCMKTS:IBDSF) Head-To-Head Review

Iberdrola (OTCMKTS:IBDSF) and WEC Energy Group (NYSE:WEC) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

16.5% of Iberdrola shares are held by institutional investors. Comparatively, 77.2% of WEC Energy Group shares are held by institutional investors. 0.5% of WEC Energy Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Iberdrola pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.5%. Iberdrola pays out 7.1% of its earnings in the form of a dividend. WEC Energy Group pays out 73.8% 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. WEC Energy Group has increased its dividend for 23 consecutive years. WEC Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iberdrola	N/A	N/A	N/A
WEC Energy Group	16.69%	12.90%	3.58%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	N/A	N/A	N/A	$0.33	72.36
WEC Energy Group	$9.80 billion	3.64	$1.56 billion	$5.16	21.25

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

Analyst Recommendations

This is a breakdown of current ratings for Iberdrola and WEC Energy Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	0	0	0	0	0.00
WEC Energy Group	0	9	8	1	2.56

WEC Energy Group has a consensus target price of $123.20, indicating a potential upside of 12.37%. Given WEC Energy Group’s stronger consensus rating and higher probable upside, analysts plainly believe WEC Energy Group is more favorable than Iberdrola.

Summary

WEC Energy Group beats Iberdrola on 13 of the 15 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About WEC Energy Group

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. It operates through Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments. The company generates and distributes electricity from coal, natural gas, oil, and nuclear, as well as renewable energy resources, including wind, solar, hydroelectric, and biomass; and distributes and transports natural gas. It also owns, maintains, monitors, and operates electric transmission systems; and generates, distributes, and sells steam. As of December 31, 2023, the company operated approximately 35,500 miles of overhead distribution lines and 36,500 miles of underground distribution cables, as well as 430 electric distribution substations and 523,700 line transformers; approximately 46,400 miles of natural gas distribution mains; 1,700 miles of natural gas transmission mains; 2.4 million natural gas lateral services; 490 natural gas distribution and transmission gate stations; and 69.3 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was founded in 1896 and is headquartered in Milwaukee, Wisconsin.