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MGEE vs RNW

MGEE
MGE Energy, Inc.
NEUTRAL
Price
$79.85
Market Cap
$2.93B
Sector
Utilities
AI Confidence
85%
RNW
ReNew Energy Global Plc
NEUTRAL
Price
$4.99
Market Cap
$1.82B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
MGEE
21.47
RNW
13.86
Forward P/E
MGEE
18.83
RNW
17.61
P/B Ratio
MGEE
2.24
RNW
1.37
P/S Ratio
MGEE
4.04
RNW
0.01
EV/EBITDA
MGEE
13.42
RNW
8.03

Profitability

Gross Margin
MGEE
42.56%
RNW
83.77%
Operating Margin
MGEE
20.55%
RNW
38.05%
Profit Margin
MGEE
18.7%
RNW
9.25%
ROE
MGEE
10.72%
RNW
9.51%
ROA
MGEE
3.81%
RNW
3.97%

Growth

Revenue Growth
MGEE
11.7%
RNW
36.1%
Earnings Growth
MGEE
5.1%
RNW
--

Financial Health

Debt/Equity
MGEE
0.72
RNW
5.46
Current Ratio
MGEE
0.77
RNW
0.57
Quick Ratio
MGEE
0.4
RNW
0.39

Dividends

Dividend Yield
MGEE
2.35%
RNW
--
Payout Ratio
MGEE
49.73%
RNW
0.0%

AI Verdict

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
RNW NEUTRAL

RNW presents a complex profile with a stable Piotroski F-Score of 6/9, but severe balance sheet vulnerabilities. While the stock trades below its Graham Number ($5.43) and exhibits a very attractive P/E ratio relative to the utilities sector, its Debt/Equity ratio of 5.46 and a Current Ratio of 0.57 indicate significant leverage and liquidity risks. Strong revenue growth (36.10%) and high operating margins are offset by extreme earnings volatility and a bearish technical trend. The valuation appears cheap, but the risk premium is justified by the financial instability.

Strengths
Strong revenue growth of 36.10% YoY
High operating margin (38.05%) and gross margin (83.77%)
P/E ratio (13.86) is significantly lower than the sector average (27.63)
Risks
Extreme leverage with a Debt/Equity ratio of 5.46
Poor short-term liquidity (Current Ratio 0.57, Quick Ratio 0.39)
High earnings volatility with frequent swings between large losses and gains

Compare Another Pair

MGEE vs RNW: Head-to-Head Comparison

This page compares MGE Energy, Inc. (MGEE) and ReNew Energy Global Plc (RNW) 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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