Exelon (NASDAQ:EXC – Get Free Report) and MGE Energy (NASDAQ:MGEE – Get Free Report) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
80.9% of Exelon shares are held by institutional investors. Comparatively, 52.6% of MGE Energy shares are held by institutional investors. 0.1% of Exelon shares are held by insiders. Comparatively, 0.4% of MGE Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for Exelon and MGE Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exelon | 1 | 13 | 5 | 0 | 2.21 |
| MGE Energy | 1 | 1 | 1 | 0 | 2.00 |
Risk & Volatility
Exelon has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.
Earnings & Valuation
This table compares Exelon and MGE Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exelon | $24.26 billion | 1.79 | $2.77 billion | $2.73 | 15.38 |
| MGE Energy | $769.13 million | 3.58 | $135.89 million | $4.07 | 17.90 |
Exelon has higher revenue and earnings than MGE Energy. Exelon is trading at a lower price-to-earnings ratio than MGE Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Exelon and MGE Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exelon | 10.99% | 9.81% | 2.43% |
| MGE Energy | 19.45% | 11.10% | 4.74% |
Dividends
Exelon pays an annual dividend of $1.68 per share and has a dividend yield of 4.0%. MGE Energy pays an annual dividend of $2.03 per share and has a dividend yield of 2.8%. Exelon pays out 61.5% of its earnings in the form of a dividend. MGE Energy pays out 49.9% 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. Exelon has increased its dividend for 3 consecutive years and MGE Energy has increased its dividend for 49 consecutive years.
Summary
MGE Energy beats Exelon on 10 of the 17 factors compared between the two stocks.
About Exelon
Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.
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.
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