Financial Analysis: EuroSite Power (OTCMKTS:EUSP) vs. MGE Energy (NASDAQ:MGEE)

EuroSite Power (OTCMKTS:EUSP) and MGE Energy (NASDAQ:MGEE) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares EuroSite Power 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
EuroSite Power	$7.56 million	0.66	$470,000.00	N/A	N/A
MGE Energy	$662.23 million	4.97	$117.70 million	$3.32	27.42

MGE Energy has higher revenue and earnings than EuroSite Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EuroSite Power	5.05%	3.68%	3.20%
MGE Energy	17.45%	10.04%	4.33%

Insider & Institutional Ownership

52.6% of MGE Energy shares are owned by institutional investors. 0.2% of MGE Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

EuroSite Power has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for EuroSite Power and MGE Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroSite Power	0	0	0	0	N/A
MGE Energy	1	0	0	0	1.00

MGE Energy has a consensus price target of $74.00, suggesting a potential downside of 18.71%. Given MGE Energy’s higher possible upside, analysts plainly believe MGE Energy is more favorable than EuroSite Power.

Summary

MGE Energy beats EuroSite Power on 10 of the 10 factors compared between the two stocks.

About EuroSite Power

EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.

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.