Head to Head Comparison: SCANA (SCG) and Duke Energy (DUK)

SCANA (NYSE: SCG) and Duke Energy (NYSE:DUK) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

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This table compares SCANA and Duke Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SCANA -2.70% 10.61% 3.16%
Duke Energy 12.95% 7.72% 2.36%

Dividends

SCANA pays an annual dividend of $2.45 per share and has a dividend yield of 6.5%. Duke Energy pays an annual dividend of $3.56 per share and has a dividend yield of 4.6%. SCANA pays out 58.3% of its earnings in the form of a dividend. Duke Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SCANA has increased its dividend for 18 consecutive years and Duke Energy has increased its dividend for 11 consecutive years. SCANA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares SCANA and Duke Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SCANA $4.41 billion 1.22 -$119.00 million $4.20 8.94
Duke Energy $23.57 billion 2.30 $3.06 billion $4.57 16.95

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

Risk and Volatility

SCANA has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Duke Energy has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.

Insider and Institutional Ownership

70.3% of SCANA shares are owned by institutional investors. Comparatively, 57.0% of Duke Energy shares are owned by institutional investors. 0.4% of SCANA shares are owned by company insiders. Comparatively, 0.1% of Duke Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SCANA and Duke Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SCANA 2 6 2 0 2.00
Duke Energy 2 9 4 0 2.13

SCANA currently has a consensus price target of $54.07, indicating a potential upside of 44.00%. Duke Energy has a consensus price target of $84.38, indicating a potential upside of 8.93%. Given SCANA’s higher possible upside, equities research analysts plainly believe SCANA is more favorable than Duke Energy.

Summary

SCANA beats Duke Energy on 9 of the 17 factors compared between the two stocks.

About SCANA

SCANA Corporation is a holding company. The Company, through its subsidiaries, is engaged in the generation, transmission, distribution and sale of electricity in South Carolina. The Company operates through segments, including Electric Operations, Gas Distribution, Gas Marketing and All Other. The Company is engaged in the purchase, transmission and sale of natural gas in North Carolina and South Carolina. The Electric Operations segment generates, transmits and distributes electricity. The Company’s regulated businesses include subsidiaries, such as South Carolina Electric & Gas Company (SCE&G), South Carolina Fuel Company, Inc. (Fuel Company), South Carolina Generating Company, Inc. (GENCO) and Public Service Company of North Carolina, Incorporated (PSNC Energy). The Company’s nonregulated businesses include subsidiaries, such as SCANA Energy Marketing, Inc. (SCANA Energy), ServiceCare, Inc., SCANA Services, Inc. and SCANA Corporate Security Services, Inc.

About Duke Energy

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; uses coal, hydroelectric, natural gas, oil, renewable sources, and nuclear fuel to generate electricity; and engages in the wholesale of electricity to municipalities, electric cooperative utilities, and other load-serving entities. This segment serves approximately 7.6 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 95,000 square miles; and owns approximately 49,506 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in various pipeline transmission and natural gas storage facilities. It has approximately 1.5 million customers, including 1 million customers located in North Carolina, South Carolina, and Tennessee, as well as 526,000 customers located in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, builds, develops, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. This segment has 21 wind and 63 solar facilities with a capacity of 2,907 MW across 14 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. Duke Energy Corporation is headquartered in Charlotte, North Carolina.

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