MGE Energy (NASDAQ:MGEE) and Centuri (NYSE:CTRI) Head-To-Head Comparison

Centuri (NYSE:CTRI) and MGE Energy (NASDAQ:MGEE) are both mid-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

52.6% of MGE Energy shares are owned by institutional investors. 0.3% of Centuri shares are owned by company insiders. Comparatively, 0.4% of MGE Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Centuri has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centuri	0.98%	5.64%	1.81%
MGE Energy	18.61%	10.94%	4.68%

Valuation and Earnings

This table compares Centuri and MGE Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centuri	$3.16 billion	1.02	$22.40 million	$0.34	94.22
MGE Energy	$743.65 million	3.75	$135.89 million	$3.90	19.47

MGE Energy has lower revenue, but higher earnings than Centuri. MGE Energy is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Centuri and MGE Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centuri	2	1	2	0	2.00
MGE Energy	1	2	0	0	1.67

Centuri presently has a consensus target price of $37.80, suggesting a potential upside of 18.00%. MGE Energy has a consensus target price of $76.50, suggesting a potential upside of 0.75%. Given Centuri’s stronger consensus rating and higher possible upside, research analysts clearly believe Centuri is more favorable than MGE Energy.

Summary

MGE Energy beats Centuri on 8 of the 14 factors compared between the two stocks.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.

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.