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HTO vs MGEE

HTO
H2O America
BEARISH
Price
$59.67
Market Cap
$2.5B
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
HTO
20.43
MGEE
21.47
Forward P/E
HTO
21.08
MGEE
18.83
P/B Ratio
HTO
1.4
MGEE
2.24
P/S Ratio
HTO
3.12
MGEE
4.04
EV/EBITDA
HTO
13.36
MGEE
13.42

Profitability

Gross Margin
HTO
57.03%
MGEE
42.56%
Operating Margin
HTO
19.69%
MGEE
20.55%
Profit Margin
HTO
12.81%
MGEE
18.7%
ROE
HTO
7.06%
MGEE
10.72%
ROA
HTO
2.39%
MGEE
3.81%

Growth

Revenue Growth
HTO
-1.8%
MGEE
11.7%
Earnings Growth
HTO
-34.4%
MGEE
5.1%

Financial Health

Debt/Equity
HTO
1.28
MGEE
0.72
Current Ratio
HTO
0.7
MGEE
0.77
Quick Ratio
HTO
0.59
MGEE
0.4

Dividends

Dividend Yield
HTO
2.95%
MGEE
2.35%
Payout Ratio
HTO
57.53%
MGEE
49.73%

AI Verdict

HTO BEARISH

HTO presents a concerning divergence between its market price and fundamental performance. While the Piotroski F-Score of 6/9 indicates stable financial health, the company is suffering from severe growth decay with YoY earnings plummeting by 34.40% and revenue contracting. The stock is currently trading near its 52-week high ($59.67) despite being significantly overvalued relative to its intrinsic value ($20.44) and slightly above its Graham Number ($52.94). With bearish insider sentiment and poor liquidity ratios, the current valuation appears unsustainable.

Strengths
Stable Piotroski F-Score (6/9) indicating baseline operational health
Profit margins (12.81%) and ROE (7.06%) outperform sector averages
Debt/Equity ratio (1.28) is lower than the utility sector average (1.70)
Risks
Severe earnings contraction (-34.40% YoY) and negative revenue growth
Poor short-term liquidity with a Current Ratio of 0.70 and Quick Ratio of 0.59
Significant valuation gap between current price and growth-based intrinsic value
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

HTO vs MGEE: Head-to-Head Comparison

This page compares H2O America (HTO) 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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