Critical Contrast: Tennessee Valley Authority PARRS A 2029 (NYSE:TVE) and MGE Energy (NASDAQ:MGEE)

Tennessee Valley Authority PARRS A 2029 (NYSE:TVE) and MGE Energy (NASDAQ:MGEE) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Valuation & Earnings

This table compares Tennessee Valley Authority PARRS A 2029 and MGE Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennessee Valley Authority PARRS A 2029	N/A	N/A	N/A	N/A	N/A
MGE Energy	$743.65 million	4.14	$135.89 million	$4.07	20.03

MGE Energy has higher revenue and earnings than Tennessee Valley Authority PARRS A 2029.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tennessee Valley Authority PARRS A 2029 and MGE Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennessee Valley Authority PARRS A 2029	0	0	0	0	0.00
MGE Energy	1	1	1	0	2.00

MGE Energy has a consensus target price of $78.50, suggesting a potential downside of 3.73%. Given MGE Energy’s stronger consensus rating and higher probable upside, analysts plainly believe MGE Energy is more favorable than Tennessee Valley Authority PARRS A 2029.

Institutional & Insider Ownership

52.6% of MGE Energy shares are held by institutional investors. 0.4% of MGE Energy shares are held by company 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.

Profitability

This table compares Tennessee Valley Authority PARRS A 2029 and MGE Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennessee Valley Authority PARRS A 2029	N/A	N/A	N/A
MGE Energy	19.45%	11.10%	4.74%

Dividends

Tennessee Valley Authority PARRS A 2029 pays an annual dividend of $0.84 per share and has a dividend yield of 3.6%. MGE Energy pays an annual dividend of $1.90 per share and has a dividend yield of 2.3%. MGE Energy pays out 46.7% of its earnings in the form of a dividend. MGE Energy has raised its dividend for 49 consecutive years.

Summary

MGE Energy beats Tennessee Valley Authority PARRS A 2029 on 10 of the 12 factors compared between the two stocks.

About Tennessee Valley Authority PARRS A 2029

for more than eight decades, the tennessee valley authority has provided affordable electricity, environmental stewardship and economic development opportunities to the tennessee valley. tva was established by congress in 1933 to address a wide range of environmental, economic and technological issues, including the need for low-cost electricity, and navigation and flood control along the tennessee river system. tva is fully self-financing, funding virtually all operations through electricity sales and power system bond financing. tva makes no profit and receives no tax money. tva’s power service territory includes most off tennessee and parts of alabama, georgia, kentucky, mississippi, north carolina and virginia, covering 80,000 square miles and providing electricity to more than 9 million people at prices below the national average, tva sales electricity to 155 local power companies and 57 directly served industries and federal facilities. mission: tva was built for the people – to

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.