Genie Energy Ltd. (GNE) vs MGE Energy Inc. (MGEE)

Genie Energy Ltd. and MGE Energy Inc. are both Utilities Regulated Electric companies. MGE Energy Inc. is the larger, with a market value of $2.6B against $415.6M — 6.2× the size. Genie Energy Ltd. trades at the lower P/E: 16.2× against 17.2×. Genie Energy Ltd. grew revenue faster over the last twelve months: 10.0% against 7.07%. MGE Energy Inc. has the higher net margin (19.5% vs 5.05%) and the lower return on invested capital (4.49% vs 22.0%). Both pay a dividend; MGE Energy Inc. yields more (2.59% vs 1.59%). Across the 22 metrics below, Genie Energy Ltd. leads on 18 and MGE Energy Inc. on 4.

Valuation

Metric GNE MGEE Utilities Regulated Electric median
P/E 16.25 17.21 18.84
P/S 0.83 3.40 2.52
P/B 1.63 1.82 1.63
Price to free cash flow 38.70 n/m 36.22
EV/EBITDA 10.07 12.42 11.82
EV/Sales 0.43 4.60 4.58
Earnings yield 6.15% 5.81% 5.30%
Free cash flow yield 2.58% (6.28%) (5.06%)

Profitability

Metric GNE MGEE Utilities Regulated Electric median
Gross margin 25.33% 72.64% 66.28%
Operating margin 4.05% 22.02% 21.79%
Net margin 5.05% 19.45% 12.94%
Free cash flow margin 2.19% (21.36%) (11.51%)
Return on equity 11.47% 11.04% 9.75%
Return on assets 6.74% 4.86% 2.75%
Return on invested capital 22.04% 4.49% 3.87%

Growth

Metric GNE MGEE Utilities Regulated Electric median
Revenue growth (TTM) 10.01% 7.07% 7.43%
EPS growth (last fiscal year) 95.65% 11.71% —
Revenue growth, 5-year CAGR 7.06% 6.66% 6.75%
Net income growth, 5-year CAGR 15.51% 8.02% 6.44%

Health

Metric GNE MGEE Utilities Regulated Electric median
Debt to equity 0.03 0.65 1.53
Current ratio 2.89 1.14 0.81
Net debt to EBITDA (7.07) 3.17 5.25

Dividend

Metric GNE MGEE Utilities Regulated Electric median
Dividend yield 1.59% 2.59% 4.33%
Payout ratio 0.14 0.51 0.66

Size

Metric GNE MGEE Utilities Regulated Electric median
Market cap 415.58m 2.59b 22.90b

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