WEC Energy Group (WEC) and United Utilities Group (UUGRY) Financial Contrast

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

Analyst Ratings

This is a summary of recent ratings for WEC Energy Group and United Utilities Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WEC Energy Group 0 5 2 0 2.29
United Utilities Group 0 4 2 0 2.33

WEC Energy Group currently has a consensus price target of $66.83, indicating a potential upside of 2.54%. Given WEC Energy Group’s higher possible upside, analysts clearly believe WEC Energy Group is more favorable than United Utilities Group.

Volatility & Risk

WEC Energy Group has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, United Utilities Group has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares WEC Energy Group and United Utilities Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WEC Energy Group $7.65 billion 2.69 $1.20 billion $3.14 20.76
United Utilities Group $2.30 billion 3.08 $470.21 million N/A N/A

WEC Energy Group has higher revenue and earnings than United Utilities Group.

Institutional & Insider Ownership

73.0% of WEC Energy Group shares are owned by institutional investors. Comparatively, 0.2% of United Utilities Group shares are owned by institutional investors. 0.9% of WEC Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

WEC Energy Group pays an annual dividend of $2.21 per share and has a dividend yield of 3.4%. United Utilities Group pays an annual dividend of $1.34 per share and has a dividend yield of 6.5%. WEC Energy Group pays out 70.4% of its earnings in the form of a dividend. WEC Energy Group has increased its dividend for 7 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
WEC Energy Group 16.23% 11.01% 3.30%
United Utilities Group N/A N/A N/A

Summary

WEC Energy Group beats United Utilities Group on 9 of the 14 factors compared between the two stocks.

About WEC Energy Group

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.

About United Utilities Group

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is also involved in renewable energy generation, corporate trustee, financing, and property management activities; and the provision of consulting and project management services. The company operates 42,000 kilometers (km) of water pipes; 77,000 km of wastewater pipes; 568 wastewater treatment works; and 88 water treatment works. It serves 3 million households and 200,000 business customers. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

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