Premier (OTCMKTS:PRHL) & MGE Energy (NASDAQ:MGEE) Financial Review

MGE Energy (NASDAQ:MGEE) and Premier (OTCMKTS:PRHL) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation and Earnings

This table compares MGE Energy and Premier”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGE Energy	$676.94 million	4.57	$120.57 million	$3.60	23.50
Premier	N/A	N/A	N/A	N/A	N/A

MGE Energy has higher revenue and earnings than Premier.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MGE Energy and Premier, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGE Energy	1	2	0	0	1.67
Premier	0	0	0	0	0.00

MGE Energy currently has a consensus target price of $79.00, indicating a potential downside of 6.61%. Given Premier’s higher probable upside, analysts plainly believe Premier is more favorable than MGE Energy.

Profitability

This table compares MGE Energy and Premier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGE Energy	18.24%	10.58%	4.65%
Premier	N/A	N/A	N/A

Institutional and Insider Ownership

52.6% of MGE Energy shares are owned by institutional investors. 0.2% of MGE Energy shares are owned by insiders. Comparatively, 2.2% of Premier 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.

Summary

MGE Energy beats Premier on 6 of the 8 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 Premier

Premier Holding Corp. is a holding company, which engages in the provision of energy solutions. The firm operates through its subsidiary companies, Energy Efficiency Experts, Inc. (E3) and The Power Company USA, LLC (TPC). It enables customers to reduce energy consumption, lower operating and maintenance costs, and realize environmental benefits. The company was founded on October 18, 1971 and is headquartered in Tustin, CA.