Analyzing Algonquin Power & Utilities (NYSE:AQN) & WEC Energy Group (NYSE:WEC)

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

Earnings and Valuation

This table compares WEC Energy Group and Algonquin Power & Utilities”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEC Energy Group	$10.08 billion	3.74	$1.56 billion	$5.01	23.12
Algonquin Power & Utilities	$2.43 billion	1.93	$180.80 million	$0.22	27.70

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

Profitability

This table compares WEC Energy Group and Algonquin Power & Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEC Energy Group	16.25%	12.72%	3.55%
Algonquin Power & Utilities	6.62%	5.21%	1.83%

Volatility & Risk

WEC Energy Group has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Algonquin Power & Utilities has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

77.2% of WEC Energy Group shares are owned by institutional investors. Comparatively, 62.3% of Algonquin Power & Utilities shares are owned by institutional investors. 0.5% of WEC Energy Group shares are owned by company insiders. Comparatively, 0.1% of Algonquin Power & Utilities shares are owned by company 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.

Dividends

WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.3%. Algonquin Power & Utilities pays an annual dividend of $0.26 per share and has a dividend yield of 4.3%. 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. Algonquin Power & Utilities pays out 118.2% 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 raised its dividend for 23 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for WEC Energy Group and Algonquin Power & Utilities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEC Energy Group	0	9	8	1	2.56
Algonquin Power & Utilities	0	6	6	0	2.50

WEC Energy Group currently has a consensus price target of $123.20, suggesting a potential upside of 6.37%. Algonquin Power & Utilities has a consensus price target of $6.81, suggesting a potential upside of 11.66%. Given Algonquin Power & Utilities’ higher possible upside, analysts plainly believe Algonquin Power & Utilities is more favorable than WEC Energy Group.

Summary

WEC Energy Group beats Algonquin Power & Utilities 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 Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is an investment holding company, which engages in energy generation and water distribution facilities. It operates through the Regulated Services Group and Renewable Energy Group segments. The Regulated Services Group segment owns and operates a portfolio of electric, natural gas, water distribution, and wastewater collection utility systems and transmission. The Renewable Energy Group segment focuses on operating a diversified portfolio of renewable and thermal electric generation assets. The company was founded on August 1, 1988 and is headquartered in Oakville, Canada.