MGE Energy (NASDAQ:MGEE – Get Free Report) and Pampa Energia (NYSE:PAM – Get Free Report) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares MGE Energy and Pampa Energia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MGE Energy | 18.61% | 10.94% | 4.68% |
| Pampa Energia | 20.31% | 12.23% | 6.75% |
Institutional and Insider Ownership
52.6% of MGE Energy shares are owned by institutional investors. Comparatively, 12.8% of Pampa Energia shares are owned by institutional investors. 0.4% of MGE Energy shares are owned by company insiders. Comparatively, 55.5% of Pampa Energia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MGE Energy | 1 | 1 | 1 | 0 | 2.00 |
| Pampa Energia | 0 | 3 | 2 | 0 | 2.40 |
MGE Energy presently has a consensus price target of $75.50, suggesting a potential downside of 2.78%. Pampa Energia has a consensus price target of $103.83, suggesting a potential upside of 17.39%. Given Pampa Energia’s stronger consensus rating and higher probable upside, analysts plainly believe Pampa Energia is more favorable than MGE Energy.
Volatility & Risk
MGE Energy has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Pampa Energia has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Valuation & Earnings
This table compares MGE Energy and Pampa Energia”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MGE Energy | $743.65 million | 3.84 | $135.89 million | $3.90 | 19.91 |
| Pampa Energia | $2.00 billion | 2.41 | $377.00 million | $8.02 | 11.03 |
Pampa Energia has higher revenue and earnings than MGE Energy. Pampa Energia is trading at a lower price-to-earnings ratio than MGE Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Pampa Energia beats MGE Energy on 11 of the 14 factors compared between the two stocks.
About MGE Energy
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.
About Pampa Energia
Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.
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