Critical Survey: Electricité de France (OTCMKTS:ECIFF) vs. WEC Energy Group (NYSE:WEC)

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

Insider & Institutional Ownership

3.7% of Electricité de France 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Electricité de France and WEC Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electricité de France	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 12.64%. Given WEC Energy Group’s stronger consensus rating and higher probable upside, analysts plainly believe WEC Energy Group is more favorable than Electricité de France.

Valuation & Earnings

This table compares Electricité de France and WEC Energy Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electricité de France	N/A	N/A	N/A	$1.90	6.77
WEC Energy Group	$10.14 billion	3.51	$1.56 billion	$5.16	21.20

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

Profitability

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

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

Dividends

Electricité de France pays an annual dividend of $0.68 per share and has a dividend yield of 5.3%. WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.5%. Electricité de France pays out 35.8% 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. Electricité de France is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

WEC Energy Group beats Electricité de France on 13 of the 15 factors compared between the two stocks.

About Electricité de France

Electricité de France S.A., an integrated energy company, engages in the power generation, transmission, distribution, supply, and trading activities in France, the United Kingdom, Italy, and internationally. The company generates electricity through nuclear, fossil fuel, hydro, solar, wind, biomass, biogas, thermal, and cogeneration plants. It also manages low and medium-voltage public electricity distribution networks; operates, maintains, and develops high-voltage and very-high-voltage electricity transmission networks; and services and produces equipment and fuel for nuclear reactors. In addition, the company is involved in commodity trading activities; and the provision of energy services, including district heating services, thermal energy services, etc. It serves approximately 38.5 million customers, including small businesses, local authorities, and industrial and residential customers. The company was founded in 1946 and is headquartered in Paris, France.

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.