WEC Energy Group (WEC) vs. Its Peers Critical Survey
WEC Energy Group (NYSE: WEC) is one of 83 public companies in the “Electric Utilities” industry, but how does it compare to its peers? We will compare WEC Energy Group to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.
WEC Energy Group pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. WEC Energy Group pays out 68.4% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.5% of their earnings in the form of a dividend. WEC Energy Group has raised its dividend for 6 consecutive years. WEC Energy Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This is a breakdown of recent recommendations 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||5||1||0||2.00|
|WEC Energy Group Competitors||693||3233||2435||52||2.29|
WEC Energy Group currently has a consensus price target of $62.50, indicating a potential downside of 4.55%. As a group, “Electric Utilities” companies have a potential upside of 5.64%. Given WEC Energy Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe WEC Energy Group has less favorable growth aspects than its peers.
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||12.72%||10.75%||3.23%|
|WEC Energy Group Competitors||-10.79%||3.21%||0.49%|
Risk & Volatility
WEC Energy Group has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, WEC Energy Group’s peers have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.
Earnings & Valuation
This table compares WEC Energy Group and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|WEC Energy Group||$7.61 billion||$2.51 billion||21.54|
|WEC Energy Group Competitors||$7.30 billion||$2.15 billion||30.33|
WEC Energy Group has higher revenue and earnings than its peers. 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.
Institutional & Insider Ownership
70.2% of WEC Energy Group shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 1.0% of WEC Energy Group shares are held by insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
WEC Energy Group beats its peers on 8 of the 15 factors compared.
About WEC Energy Group
WEC Energy Group, Inc. was a diversified holding company with natural gas and electric utility operations, an approximately 60% equity ownership interest in American Transmission Company LLC, and non-utility electric operations through its We Power business, as of December 31, 2016. Its segments include Wisconsin; Illinois; Other States; Electric Transmission; We Power, and Corporate and Other. Wisconsin includes the electric and natural gas utility operations of Wisconsin Electric Power Company, Wisconsin Gas LLC, and Wisconsin Public Service Corporation, including WE’s and WPS’s electric and natural gas operations in the state of Michigan. Illinois includes the natural gas utility and non-utility operations of The Peoples Gas Light and Coke Company and North Shore Gas Company. Other states includes the natural gas utility and non-utility operations of Minnesota Energy Resources Corporation and Michigan Gas Utilities Corporation.
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