Financial Comparison: Polar Power (NASDAQ:POLA) vs. MGE Energy (NASDAQ:MGEE)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MGE Energy	18.24%	10.58%	4.65%
Polar Power	-38.21%	-39.10%	-25.54%

Volatility and Risk

MGE Energy has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Insider and Institutional Ownership

52.6% of MGE Energy shares are held by institutional investors. Comparatively, 26.1% of Polar Power shares are held by institutional investors. 0.2% of MGE Energy shares are held by insiders. Comparatively, 32.5% of Polar Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for MGE Energy and Polar Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGE Energy	1	1	1	0	2.00
Polar Power	1	0	0	0	1.00

MGE Energy currently has a consensus target price of $79.00, suggesting a potential downside of 5.97%. Given MGE Energy’s stronger consensus rating and higher probable upside, analysts plainly believe MGE Energy is more favorable than Polar Power.

Earnings & Valuation

This table compares MGE Energy and Polar Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGE Energy	$725.52 million	4.23	$120.57 million	$3.69	22.77
Polar Power	$11.97 million	0.66	-$4.68 million	($0.61)	-5.18

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

Summary

MGE Energy beats Polar Power on 12 of the 14 factors compared between the two stocks.

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.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.