Reviewing IDACORP (NYSE:IDA) & WEC Energy Group (NYSE:WEC)

WEC Energy Group (NYSE:WEC) and IDACORP (NYSE:IDA) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Earnings and Valuation

This table compares WEC Energy Group and IDACORP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEC Energy Group	$8.60 billion	4.26	$1.53 billion	$5.29	21.27
IDACORP	$1.81 billion	3.85	$289.17 million	$5.82	22.11

WEC Energy Group has higher revenue and earnings than IDACORP. WEC Energy Group is trading at a lower price-to-earnings ratio than IDACORP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WEC Energy Group and IDACORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEC Energy Group	17.75%	12.60%	3.50%
IDACORP	16.96%	9.18%	3.24%

Analyst Ratings

This is a breakdown of current ratings and price targets for WEC Energy Group and IDACORP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEC Energy Group	1	8	5	2	2.50
IDACORP	0	2	6	1	2.89

WEC Energy Group presently has a consensus price target of $120.21, suggesting a potential upside of 6.86%. IDACORP has a consensus price target of $137.38, suggesting a potential upside of 6.74%. Given WEC Energy Group’s higher possible upside, analysts clearly believe WEC Energy Group is more favorable than IDACORP.

Institutional and Insider Ownership

77.2% of WEC Energy Group shares are held by institutional investors. Comparatively, 89.1% of IDACORP shares are held by institutional investors. 0.5% of WEC Energy Group shares are held by insiders. Comparatively, 0.5% of IDACORP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

WEC Energy Group pays an annual dividend of $3.57 per share and has a dividend yield of 3.2%. IDACORP pays an annual dividend of $3.52 per share and has a dividend yield of 2.7%. WEC Energy Group pays out 67.5% of its earnings in the form of a dividend. IDACORP pays out 60.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. WEC Energy Group has raised its dividend for 23 consecutive years and IDACORP has raised its dividend for 13 consecutive years. WEC Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

WEC Energy Group has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, IDACORP has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

WEC Energy Group beats IDACORP on 11 of the 18 factors compared between the two stocks.

About WEC Energy Group

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. It operates through Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments. The company generates and distributes electricity from coal, natural gas, oil, and nuclear, as well as renewable energy resources, including wind, solar, hydroelectric, and biomass; and distributes and transports natural gas. It also owns, maintains, monitors, and operates electric transmission systems; and generates, distributes, and sells steam. As of December 31, 2023, the company operated approximately 35,500 miles of overhead distribution lines and 36,500 miles of underground distribution cables, as well as 430 electric distribution substations and 523,700 line transformers; approximately 46,400 miles of natural gas distribution mains; 1,700 miles of natural gas transmission mains; 2.4 million natural gas lateral services; 490 natural gas distribution and transmission gate stations; and 69.3 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was founded in 1896 and is headquartered in Milwaukee, Wisconsin.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.