IDACORP, Inc. (IDA) vs MGE Energy Inc. (MGEE)

IDACORP, Inc. and MGE Energy Inc. are both Utilities Regulated Electric companies. IDACORP, Inc. is the larger, with a market value of $7.9B against $2.7B — 2.9× the size. MGE Energy Inc. trades at the lower P/E: 17.8× against 22.5×. MGE Energy Inc. grew revenue faster over the last twelve months: 7.07% against −0.39%. MGE Energy Inc. has the higher net margin (19.5% vs 18.8%) and the higher return on invested capital (4.49% vs 3.42%). Both pay a dividend; MGE Energy Inc. yields more (2.68% vs 2.55%). Across the 22 metrics below, MGE Energy Inc. leads on 21 and IDACORP, Inc. on 1.

Valuation

Metric IDA MGEE Utilities Regulated Electric median
P/E 22.45 17.76 19.47
P/S 4.28 3.51 2.78
P/B 2.04 1.87 1.77
Price to free cash flow n/m n/m 38.27
EV/EBITDA 16.76 12.71 12.25
EV/Sales 6.34 4.70 4.74
Earnings yield 4.45% 5.63% 5.02%
Free cash flow yield (12.09%) (6.09%) (5.09%)

Profitability

Metric IDA MGEE Utilities Regulated Electric median
Gross margin 68.13% 72.64% 66.28%
Operating margin 22.75% 22.02% 21.79%
Net margin 18.78% 19.45% 12.94%
Free cash flow margin (51.75%) (21.36%) (11.51%)
Return on equity 9.42% 11.04% 9.75%
Return on assets 3.26% 4.86% 2.75%
Return on invested capital 3.42% 4.49% 3.87%

Growth

Metric IDA MGEE Utilities Regulated Electric median
Revenue growth (TTM) (0.39%) 7.07% 7.43%
EPS growth (last fiscal year) 7.27% 11.71% 7.45%
Revenue growth, 5-year CAGR 6.06% 6.66% 6.75%
Net income growth, 5-year CAGR 6.38% 8.02% 6.44%

Health

Metric IDA MGEE Utilities Regulated Electric median
Debt to equity 1.00 0.65 1.53
Current ratio 0.99 1.14 0.81
Net debt to EBITDA 5.28 3.17 5.25

Dividend

Metric IDA MGEE Utilities Regulated Electric median
Dividend yield 2.55% 2.68% 3.29%
Payout ratio 0.58 0.48 0.66

Size

Metric IDA MGEE Utilities Regulated Electric median
Market cap 7.91b 2.69b 23.14b

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