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CWT vs MGEE

CWT
California Water Service Group
BEARISH
Price
$46.38
Market Cap
$2.78B
Sector
Utilities
AI Confidence
85%
MGEE
MGE Energy, Inc.
NEUTRAL
Price
$79.85
Market Cap
$2.93B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CWT
21.57
MGEE
21.47
Forward P/E
CWT
16.74
MGEE
18.83
P/B Ratio
CWT
1.64
MGEE
2.24
P/S Ratio
CWT
2.78
MGEE
4.04
EV/EBITDA
CWT
12.52
MGEE
13.42

Profitability

Gross Margin
CWT
53.6%
MGEE
42.56%
Operating Margin
CWT
10.22%
MGEE
20.55%
Profit Margin
CWT
12.82%
MGEE
18.7%
ROE
CWT
7.68%
MGEE
10.72%
ROA
CWT
2.3%
MGEE
3.81%

Growth

Revenue Growth
CWT
-1.0%
MGEE
11.7%
Earnings Growth
CWT
-42.2%
MGEE
5.1%

Financial Health

Debt/Equity
CWT
0.96
MGEE
0.72
Current Ratio
CWT
0.85
MGEE
0.77
Quick Ratio
CWT
0.52
MGEE
0.4

Dividends

Dividend Yield
CWT
2.66%
MGEE
2.35%
Payout Ratio
CWT
55.81%
MGEE
49.73%

AI Verdict

CWT BEARISH

CWT exhibits significant valuation misalignment, trading at $46.38 despite a Graham Number of $37.02 and a growth-based intrinsic value of $15.05. The Piotroski F-Score of 4/9 indicates only stable health, while severe earnings contraction (-42.20% YoY) and negative revenue growth suggest fundamental decay. Despite a 'Strong Buy' analyst consensus, the combination of bearish insider selling, a 0/100 technical trend, and poor liquidity (Current Ratio 0.85) points to a bearish outlook.

Strengths
Regulated utility business model providing inherent stability
Sustainable dividend payout ratio (55.81%)
Strong gross margins (53.60%)
Risks
Severe earnings decline (-42.20% YoY)
Significant overvaluation relative to intrinsic and Graham values
Poor short-term liquidity with a current ratio below 1.0 (0.85)
MGEE NEUTRAL

MGEE presents a dichotomy between superior operational efficiency and poor valuation metrics. While the Piotroski F-Score of 4/9 indicates stable financial health and the company boasts profit margins and ROE significantly above sector averages, the stock is trading at a substantial premium to its Graham Number ($54.65) and Intrinsic Value ($54.50). The technical trend is currently bearish (0/100), and a consistent history of missing earnings estimates suggests limited near-term catalysts for price appreciation despite a conservative debt profile.

Strengths
Exceptional profit margins (18.70%) compared to sector average (4.63%)
Strong ROE (10.73%) significantly outperforming the sector average (-10.89%)
Conservative leverage with a Debt/Equity ratio of 0.72 vs sector average of 1.63
Risks
Significant overvaluation relative to Graham Number and Intrinsic Value
Bearish technical trend (0/100) and negative 1-year price performance (-10.3%)
Poor earnings track record with only 1 beat in the last 4 quarters

Compare Another Pair

CWT vs MGEE: Head-to-Head Comparison

This page compares California Water Service Group (CWT) and MGE Energy, Inc. (MGEE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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