Financial Comparison: WEC Energy Group (NYSE:WEC) versus Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY)

Terna Rete Elettrica Nazionale (OTCMKTS:TEZNY) and WEC Energy Group (NYSE:WEC) are both large-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Terna Rete Elettrica Nazionale has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, WEC Energy Group has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Terna Rete Elettrica Nazionale and WEC Energy Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terna Rete Elettrica Nazionale	N/A	N/A	N/A
WEC Energy Group	15.90%	12.40%	3.45%

Valuation & Earnings

This table compares Terna Rete Elettrica Nazionale and WEC Energy Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terna Rete Elettrica Nazionale	$3.98 billion	5.97	$1.15 billion	N/A	N/A
WEC Energy Group	$9.80 billion	3.84	$1.56 billion	$4.83	23.95

WEC Energy Group has higher revenue and earnings than Terna Rete Elettrica Nazionale.

Analyst Recommendations

This is a summary of recent ratings and target prices for Terna Rete Elettrica Nazionale and WEC Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terna Rete Elettrica Nazionale	1	1	1	0	2.00
WEC Energy Group	1	8	8	1	2.50

WEC Energy Group has a consensus price target of $120.07, indicating a potential upside of 3.77%. Given WEC Energy Group’s stronger consensus rating and higher possible upside, analysts clearly believe WEC Energy Group is more favorable than Terna Rete Elettrica Nazionale.

Dividends

Terna Rete Elettrica Nazionale pays an annual dividend of $0.47 per share and has a dividend yield of 1.3%. WEC Energy Group pays an annual dividend of $3.81 per share and has a dividend yield of 3.3%. WEC Energy Group pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WEC Energy Group has raised its dividend for 23 consecutive years. WEC Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

77.2% of WEC Energy Group shares are owned by institutional investors. 0.5% of WEC Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

WEC Energy Group beats Terna Rete Elettrica Nazionale on 13 of the 16 factors compared between the two stocks.

About Terna Rete Elettrica Nazionale

Terna S.p.A., together with its subsidiaries, provides electricity transmission and dispatching services in Italy, other Euro-area countries, and internationally. It operates through Regulated, Non-Regulated, and International segments. The company is involved in the design, construction, management, development, operation, and maintenance of national transmission grid; dispatching and metering; and construction of storage systems. It also supplies transformers and cables; provides energy and connectivity services; and installs and operates interconnecting lines. In addition, the company designs, produces, commercializes, and repairs power transformers for electricity transmission and distribution grids; industrial transformers for the steel and metals industries; special transformers for convertors used in electrochemical production; produces and sells marine and terrestrial cables; develops renewable energy projects; and undertakes private interconnector projects. Terna S.p.A. was founded in 1962 and is based in Rome, Italy.

About WEC Energy Group

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. It operates through Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments. The company generates and distributes electricity from coal, natural gas, oil, and nuclear, as well as renewable energy resources, including wind, solar, hydroelectric, and biomass; and distributes and transports natural gas. It also owns, maintains, monitors, and operates electric transmission systems; and generates, distributes, and sells steam. As of December 31, 2023, the company operated approximately 35,500 miles of overhead distribution lines and 36,500 miles of underground distribution cables, as well as 430 electric distribution substations and 523,700 line transformers; approximately 46,400 miles of natural gas distribution mains; 1,700 miles of natural gas transmission mains; 2.4 million natural gas lateral services; 490 natural gas distribution and transmission gate stations; and 69.3 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was founded in 1896 and is headquartered in Milwaukee, Wisconsin.