Head-To-Head Survey: MDU Resources Group (NYSE:MDU) and WEC Energy Group (NYSE:WEC)

WEC Energy Group (NYSE:WEC) and MDU Resources Group (NYSE:MDU) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

77.2% of WEC Energy Group shares are held by institutional investors. Comparatively, 71.4% of MDU Resources Group shares are held by institutional investors. 0.5% of WEC Energy Group shares are held by company insiders. Comparatively, 0.5% of MDU Resources Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares WEC Energy Group and MDU Resources Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEC Energy Group	$9.80 billion	3.54	$1.56 billion	$5.16	20.61
MDU Resources Group	$1.88 billion	2.23	$190.40 million	$0.95	21.53

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

Risk & Volatility

WEC Energy Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, MDU Resources Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Dividends

WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.6%. MDU Resources Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. WEC Energy Group pays out 73.8% of its earnings in the form of a dividend. MDU Resources Group pays out 58.9% 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 raised its dividend for 23 consecutive years and MDU Resources Group has raised its dividend for 1 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 WEC Energy Group and MDU Resources Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEC Energy Group	16.69%	12.90%	3.58%
MDU Resources Group	10.75%	6.89%	2.58%

Analyst Ratings

This is a summary of current recommendations for WEC Energy Group and MDU Resources Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEC Energy Group	0	10	7	1	2.50
MDU Resources Group	0	4	3	0	2.43

WEC Energy Group presently has a consensus target price of $122.41, suggesting a potential upside of 15.09%. MDU Resources Group has a consensus target price of $23.40, suggesting a potential upside of 14.43%. Given WEC Energy Group’s stronger consensus rating and higher possible upside, analysts plainly believe WEC Energy Group is more favorable than MDU Resources Group.

Summary

WEC Energy Group beats MDU Resources Group on 14 of the 18 factors compared between the two stocks.

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.

About MDU Resources Group

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. It operates through four segments: Electric, Natural Gas Distribution, Pipeline, and Construction Services. The Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming; and operates 3,400 miles of transmission lines, 4,800 miles of distribution lines, and 82 transmission and 298 distribution substations. The Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and supplies related value-added services. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. The Construction Services segment offers electrical and mechanical contracting services, including the construction and maintenance of electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping, and services; transmission and distribution contracting services, comprise construction and maintenance of overhead and underground electrical, and gas and communication infrastructure; and manufactures and supplies transmission and distribution lines construction equipment and tools. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. MDU Resources Group, Inc. was incorporated in 1924 and is headquartered in Bismarck, North Dakota.