Head to Head Analysis: WEC Energy Group (WEC) vs. Its Competitors

WEC Energy Group (NYSE:WEC) is one of 52 publicly-traded companies in the “Multi – Utilities” industry, but how does it compare to its peers? We will compare WEC Energy Group to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Earnings & Valuation

This table compares WEC Energy Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WEC Energy Group	$10.14 billion	$1.56 billion	21.09
WEC Energy Group Competitors	$16.46 billion	$269.64 million	27.61

WEC Energy Group’s peers have higher revenue, but lower earnings than WEC Energy Group. WEC Energy Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

77.2% of WEC Energy Group shares are held by institutional investors. Comparatively, 60.7% of shares of all “Multi – Utilities” companies are held by institutional investors. 0.5% of WEC Energy Group shares are held by company insiders. Comparatively, 10.1% of shares of all “Multi – Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.3%. WEC Energy Group pays out 69.1% of its earnings in the form of a dividend. As a group, “Multi – Utilities” companies pay a dividend yield of 9.4% and pay out 33.6% of their earnings in the form of a dividend. WEC Energy Group has raised its dividend for 23 consecutive years. WEC Energy Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for WEC Energy Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEC Energy Group	1	9	8	0	2.39
WEC Energy Group Competitors	1050	4107	4427	86	2.37

WEC Energy Group presently has a consensus price target of $118.00, suggesting a potential upside of 1.56%. As a group, “Multi – Utilities” companies have a potential upside of 31.58%. Given WEC Energy Group’s peers higher possible upside, analysts clearly believe WEC Energy Group has less favorable growth aspects than its peers.

Profitability

This table compares WEC Energy Group and its peers’ 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%
WEC Energy Group Competitors	8.89%	14.85%	4.08%

Volatility & Risk

WEC Energy Group has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, WEC Energy Group’s peers have a beta of 0.70, suggesting that their average share price is 30% less volatile than the S&P 500.

Summary

WEC Energy Group peers beat WEC Energy Group on 11 of the 15 factors compared.

WEC Energy Group Company Profile

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.