Reviewing Exelon (EXC) & SCANA (SCG)

Exelon (NYSE: EXC) and SCANA (NYSE:SCG) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Exelon and SCANA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exelon 6.59% 8.19% 2.02%
SCANA 10.45% 10.05% 3.05%

Earnings & Valuation

This table compares Exelon and SCANA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exelon $31.36 billion 1.18 $1.13 billion $2.23 17.22
SCANA $4.23 billion 1.50 $595.00 million $3.16 14.09

Exelon has higher revenue and earnings than SCANA. SCANA is trading at a lower price-to-earnings ratio than Exelon, indicating that it is currently the more affordable of the two stocks.

Dividends

Exelon pays an annual dividend of $1.31 per share and has a dividend yield of 3.4%. SCANA pays an annual dividend of $2.45 per share and has a dividend yield of 5.5%. Exelon pays out 58.7% of its earnings in the form of a dividend. SCANA pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exelon has increased its dividend for 2 consecutive years and SCANA has increased its dividend for 18 consecutive years. SCANA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Exelon has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, SCANA has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Insider and Institutional Ownership

77.3% of Exelon shares are owned by institutional investors. Comparatively, 66.7% of SCANA shares are owned by institutional investors. 0.7% of Exelon shares are owned by insiders. Comparatively, 0.4% of SCANA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Exelon and SCANA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelon 2 3 11 0 2.56
SCANA 2 7 2 0 2.00

Exelon presently has a consensus price target of $40.75, suggesting a potential upside of 6.09%. SCANA has a consensus price target of $56.69, suggesting a potential upside of 27.36%. Given SCANA’s higher possible upside, analysts plainly believe SCANA is more favorable than Exelon.

Summary

Exelon beats SCANA on 9 of the 17 factors compared between the two stocks.

About Exelon

Exelon Corporation is a utility services holding company. The Company, through its subsidiary, Exelon Generation Company, LLC (Generation), is engaged in the energy generation business. The Company, through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Pepco Holdings LLC (PHI), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE), is engaged in the energy delivery businesses. It operates through 12 segments: Generation’s six segments: Mid-Atlantic, Midwest, New England, New York, ERCOT and Other Power Regions; ComEd; PECO; BGE, and PHI’s three utility segments: Pepco, DPL and ACE. Generation’s integrated business consists of the generation, physical delivery and marketing of power across geographical regions through its customer-facing business, Constellation, which sells electricity and natural gas to both wholesale and retail customers.

About SCANA

SCANA Corporation is a holding company. The Company, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity in South Carolina. The Company operates through segments, including Electric Operations, Gas Distribution, Gas Marketing and All Other. The Company is engaged in the purchase, transmission and sale of natural gas in North Carolina and South Carolina. The Electric Operations segment generates, transmits and distributes electricity. The Company’s regulated businesses include subsidiaries, such as South Carolina Electric & Gas Company (SCE&G), South Carolina Fuel Company, Inc. (Fuel Company), South Carolina Generating Company, Inc. (GENCO) and Public Service Company of North Carolina, Incorporated (PSNC Energy). The Company’s nonregulated businesses include subsidiaries, such as SCANA Energy Marketing, Inc. (SCANA Energy), ServiceCare, Inc., SCANA Services, Inc. and SCANA Corporate Security Services, Inc.

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