Financial Survey: WEC Energy Group (NYSE:WEC) vs. Enel (OTCMKTS:ENLAY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enel	N/A	N/A	N/A
WEC Energy Group	16.25%	12.72%	3.55%

Earnings and Valuation

This table compares Enel 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
Enel	$90.88 billion	1.30	$4.82 billion	$0.76	15.25
WEC Energy Group	$9.80 billion	3.79	$1.56 billion	$5.01	22.78

Enel has higher revenue and earnings than WEC Energy Group. Enel 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Enel and WEC Energy Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enel	2	5	1	0	1.88
WEC Energy Group	0	9	8	1	2.56

WEC Energy Group has a consensus price target of $124.07, indicating a potential upside of 8.70%. Given WEC Energy Group’s stronger consensus rating and higher possible upside, analysts plainly believe WEC Energy Group is more favorable than Enel.

Insider & Institutional Ownership

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

Risk & Volatility

Enel has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, WEC Energy Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Dividends

Enel pays an annual dividend of $0.26 per share and has a dividend yield of 2.2%. WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.3%. Enel pays out 34.2% of its earnings in the form of a dividend. WEC Energy Group pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Summary

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

About Enel

Enel SpA operates as an integrated operator in electricity and gas industries worldwide. It generates, distributes, transmits, and sells electricity; transports and markets natural gas; and constructs and operates generation plants and distribution grids. The company also provides energy management services; e-vehicle charging infrastructure for public and private customers; and engages in the energy commodities business. It operates wind, thermal, hydroelectric, nuclear, solar photovoltaic, and geothermal power plants. The company was founded in 1962 and is headquartered in Rome, Italy.

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.