MGE Energy Inc. (MGEE) vs OGE Energy Corporation (OGE)

MGE Energy Inc. and OGE Energy Corporation are both Utilities Regulated Electric companies. OGE Energy Corporation is the larger, with a market value of $10.5B against $3.0B — 3.6× the size. MGE Energy Inc. trades at the lower P/E: 18.1× against 19.0×. MGE Energy Inc. grew revenue faster over the last twelve months: 8.04% against 2.38%. MGE Energy Inc. has the higher net margin (20.6% vs 16.4%) and the lower return on invested capital (4.69% vs 4.92%). Both pay a dividend; OGE Energy Corporation yields more (3.35% vs 2.47%). Across the 22 metrics below, MGE Energy Inc. leads on 12 and OGE Energy Corporation on 10.

Valuation

Metric MGEE OGE Utilities Regulated Electric median
P/E 18.05 19.02 19.45
P/S 3.78 3.11 2.78
P/B 2.00 2.01 1.82
Price to free cash flow n/m 50.18 45.34
EV/EBITDA 13.29 11.43 12.40
EV/Sales 4.95 4.85 4.95
Earnings yield 5.54% 5.26% 5.12%
Free cash flow yield (3.52%) 1.99% (5.93%)

Profitability

Metric MGEE OGE Utilities Regulated Electric median
Gross margin 0.00% 62.00% 62.00%
Operating margin 22.50% 25.83% 21.72%
Net margin 20.60% 16.36% 13.45%
Free cash flow margin (13.31%) 6.20% (11.71%)
Return on equity 11.62% 11.02% 9.94%
Return on assets 5.09% 3.78% 2.85%
Return on invested capital 4.69% 4.92% 3.95%

Growth

Metric MGEE OGE Utilities Regulated Electric median
Revenue growth (TTM) 8.04% 2.38% 7.78%
EPS growth (last fiscal year) 11.71% 5.94% 6.01%
Revenue growth, 5-year CAGR 6.66% 8.96% 6.72%
Net income growth, 5-year CAGR 8.02% 0.00% 6.50%

Health

Metric MGEE OGE Utilities Regulated Electric median
Debt to equity 0.59 1.12 1.54
Current ratio 1.09 0.81 0.88
Net debt to EBITDA 3.17 4.16 5.27

Dividend

Metric MGEE OGE Utilities Regulated Electric median
Dividend yield 2.47% 3.35% 3.16%
Payout ratio 0.45 0.64 0.63

Size

Metric MGEE OGE Utilities Regulated Electric median
Market cap 2.96b 10.51b 26.54b

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