Head-To-Head Survey: WEC Energy Group (WEC) vs. SCANA (SCG)

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

Dividends

SCANA pays an annual dividend of $0.49 per share and has a dividend yield of 1.2%. WEC Energy Group pays an annual dividend of $2.21 per share and has a dividend yield of 3.2%. SCANA pays out 11.7% of its earnings in the form of a dividend. WEC Energy Group pays out 70.4% 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. SCANA has raised its dividend for 18 consecutive years and WEC Energy Group has raised its dividend for 7 consecutive years.

Risk and Volatility

SCANA has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, WEC Energy Group has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Valuation and Earnings

This table compares SCANA 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
SCANA $4.41 billion 1.30 -$119.00 million $4.20 9.59
WEC Energy Group $7.65 billion 2.86 $1.20 billion $3.14 22.06

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

Institutional & Insider Ownership

69.9% of SCANA shares are held by institutional investors. Comparatively, 73.4% of WEC Energy Group shares are held by institutional investors. 0.4% of SCANA shares are held by insiders. Comparatively, 0.9% of WEC Energy Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
SCANA -5.50% 10.57% 3.01%
WEC Energy Group 16.56% 11.18% 3.37%

Analyst Recommendations

This is a breakdown of current ratings for SCANA and WEC Energy Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SCANA 1 4 3 0 2.25
WEC Energy Group 0 7 5 0 2.42

SCANA currently has a consensus target price of $40.10, indicating a potential downside of 0.40%. WEC Energy Group has a consensus target price of $69.30, indicating a potential upside of 0.04%. Given WEC Energy Group’s stronger consensus rating and higher probable upside, analysts clearly believe WEC Energy Group is more favorable than SCANA.

Summary

WEC Energy Group beats SCANA on 13 of the 17 factors compared between the two stocks.

SCANA Company Profile

SCANA Corporation, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in the United States. The company owns nuclear, coal, hydro, natural gas, oil, biomass, and solar generating facilities. It also purchases, sells, and transports natural gas; and offers energy-related services. As of December 31, 2017, the company provided electricity to approximately 719,000 customers; and natural gas to approximately 931,000 retail customers in South Carolina and North Carolina, as well as marketed natural gas to approximately 425,000 customers in Georgia. It serves municipalities, electric cooperatives, other investor-owned utilities, registered marketers, and federal and state electric agencies, as well as chemical, educational service, paper product, food product, lumber and wood product, health service, textile manufacturing, rubber and miscellaneous plastic product, automotive and tire, and fabricated metal product industries. The company was founded in 1924 and is based in Cayce, South Carolina.

WEC Energy Group Company Profile

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, and biomass sources; provides electricity transmission services; offers retail natural gas distribution services; transports customer-owned natural gas; and generates, distributes, and sells steam. The company offers electricity to approximately 1.6 million residential, small and large commercial and industrial, and other customers; and natural gas to 2.8 million residential, and commercial and industrial customers. As of December 31, 2017, it operated approximately 37,100 miles of overhead distribution lines and 32,500 miles of underground distribution cable, as well as approximately 500 distribution substations and 495,500 line transformers; and approximately 47,900 miles of natural gas distribution mains, as well as 1,200 miles of natural gas transmission mains. In addition, WEC Energy Group, Inc. invests in and develops real estate properties, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. 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 1981 and is headquartered in Milwaukee, Wisconsin.

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