WEC Energy Group, Inc. (WEC) vs Xcel Energy Inc. (XEL)

WEC Energy Group, Inc. and Xcel Energy Inc. are both Utilities Regulated Electric companies. Xcel Energy Inc. is the larger, with a market value of $43.4B against $32.9B — 1.3× the size. Xcel Energy Inc. trades at the lower P/E: 19.0× against 19.5×. WEC Energy Group, Inc. grew revenue faster over the last twelve months: 8.93% against 4.72%. WEC Energy Group, Inc. has the higher net margin (16.7% vs 15.3%) and the higher return on invested capital (3.86% vs 2.83%). Both pay a dividend; WEC Energy Group, Inc. yields more (4.31% vs 3.79%). Across the 22 metrics below, WEC Energy Group, Inc. leads on 13 and Xcel Energy Inc. on 9.

Valuation

Metric WEC XEL Utilities Regulated Electric median
P/E 19.51 19.02 18.84
P/S 3.26 2.98 2.52
P/B 2.27 1.81 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 14.62 13.89 11.82
EV/Sales 5.52 5.55 4.58
Earnings yield 5.13% 5.26% 5.30%
Free cash flow yield (4.60%) (17.63%) (5.06%)

Profitability

Metric WEC XEL Utilities Regulated Electric median
Gross margin 65.71% 67.57% 66.28%
Operating margin 22.84% 19.08% 21.79%
Net margin 16.69% 15.28% 12.94%
Free cash flow margin (14.99%) (52.63%) (11.51%)
Return on equity 12.00% 9.92% 9.75%
Return on assets 3.34% 2.75% 2.75%
Return on invested capital 3.86% 2.83% 3.87%

Growth

Metric WEC XEL Utilities Regulated Electric median
Revenue growth (TTM) 8.93% 4.72% 7.43%
EPS growth (last fiscal year) (0.41%) (0.58%) —
Revenue growth, 5-year CAGR 6.24% 4.94% 6.75%
Net income growth, 5-year CAGR 5.36% 6.50% 6.44%

Health

Metric WEC XEL Utilities Regulated Electric median
Debt to equity 1.58 1.64 1.53
Current ratio 0.53 0.70 0.81
Net debt to EBITDA 5.99 5.93 5.25

Dividend

Metric WEC XEL Utilities Regulated Electric median
Dividend yield 4.31% 3.79% 4.33%
Payout ratio 0.71 0.64 0.66

Size

Metric WEC XEL Utilities Regulated Electric median
Market cap 32.88b 43.36b 22.90b

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