NiSource (NYSE: NI) and Wec Acquisition Corp (NYSE:TEG) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
NiSource pays an annual dividend of $0.70 per share and has a dividend yield of 2.6%. Wec Acquisition Corp does not pay a dividend. NiSource pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares NiSource and Wec Acquisition Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wec Acquisition Corp||11.28%||15.70%||4.69%|
Earnings and Valuation
This table compares NiSource and Wec Acquisition Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NiSource||$4.75 billion||1.85||$1.40 billion||$0.86||31.33|
|Wec Acquisition Corp||N/A||N/A||N/A||N/A||N/A|
NiSource has higher revenue and earnings than Wec Acquisition Corp.
This is a breakdown of current ratings and price targets for NiSource and Wec Acquisition Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wec Acquisition Corp||0||0||0||0||N/A|
NiSource presently has a consensus price target of $26.43, suggesting a potential downside of 1.90%. Given NiSource’s higher possible upside, analysts clearly believe NiSource is more favorable than Wec Acquisition Corp.
Institutional & Insider Ownership
82.2% of NiSource shares are owned by institutional investors. 0.4% of NiSource shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
NiSource beats Wec Acquisition Corp on 6 of the 10 factors compared between the two stocks.
NiSource Inc. is an energy holding company. The Company is engaged in the distribution of natural gas. The Company operates through two business segments: Gas Distribution Operations and Electric Operations. The Company’s Gas Distribution Operations segment provides natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts. As of December 31, 2016, the Company’s Electric Operations segment provided electric services in 20 counties in the northern part of Indiana. The Company’s electric operations segment generated, transmitted and distributed electricity through the Company’s subsidiary NIPSCO to approximately 466,000 customers in 20 counties in the northern part of Indiana and engaged in wholesale and transmission transactions, as of December 31, 2016. NIPSCO owned and operated three coal-fired electric generating stations, as of December 31, 2016.
About Wec Acquisition Corp
Integrys Energy Group, Inc. is an energy holding company, which provides regulated natural gas and electricity, non-regulated renewable energy, and compressed natural gas products and services. The Company operates through four segments: natural gas utility, electric utility, electric transmission investment, and holding company and other. The natural gas utility segment includes the operations of Minnesota Energy Resources Corporation, Michigan Gas Utilities Corporation, North Shore Gas Company, The Peoples Gas Light and Coke Company and Wisconsin Public Service Corporation (WPS). The electric utility segment includes the electric utility operations of WPS. The electric transmission investment segment includes its 34% interest in American Transmission Company LLC. The holding company and other segment include the operations of the Integrys Energy Group holding company, Integrys Transportation Fuels, LLC, WPS Power Development LLC and the Peoples Energy, LLC holding company.
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