Should You Invest In Otter Tail Corporation ($OTTR) Or MGE Energy Inc. ($MGEE)?

2019-08-16 | Welcome! Today we compared how two different stocks in the Electric Utilities: Central industry are trading: Otter Tail Corporation and MGE Energy Inc.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, Otter Tail Corporation opened at 50.75, got to a maximum price of 51.25 and dropped to as low as 50.61 before finishing the session at 50.89. In total there were 59000 shares traded, which is enough to conduct our analysis. Compare that now to MGE Energy Inc., which opened at 73.66, had a high of 74.68, a low of 73.2, closed at 74.42 and had a total volume of 130700.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator Otter Tail Corporation MGE Energy Inc.
Accumulation-distribution index 793.37476 971.75469
on-balance volume -50.67 -73.42
chaikin money flow

1.56 1.90196
force index

0.2772 0.2058
ease of movement rating

-0.00064 -0.00135
volume-price trend

-0.28245 3.94792
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator Otter Tail Corporation MGE Energy Inc.
Average true range 0.54454 0.77703
Bolinger bands 50.69228 73.30971
Upper bollinger band 50.43772 72.97029
Lower bollinger band

50.61 73.2
Bollinger high band indicator

1.0 nan
Bollinger high low indicator

1.0 1.0
Central keltner channel

50.87 73.84667
High band keltner channel

50.37 72.82667
Low band keltner channel

51.37 74.86667
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

50.61 73.2
Donchain channel low band

50.61 73.2
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator Otter Tail Corporation MGE Energy Inc.
Moving Average Convergence Divergence (MACD) trend_macd -0.00269
MACD signal -0.00112 -0.0015
MACD difference -0.0009 -0.0012
fast Exponential Moving Average (EMA) indicator

50.61 73.2
slow Exponential Moving Average (EMA) indicator

50.61 73.2
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.14253 0.23921
trix

-1.03618 3.39489
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

66.66667 66.66667
Detrended Price Oscillator (DPO)

0.26318 -3.71439
KST Oscillator (KST)

-5.17324 53.45548
KST Oscillator (KST Signal)

-5.17324 53.45548
KST difference

-0.44228 -0.43174
Ichimoku rating

51.0 74.17
Ichimoku B rating

51.0 74.17
Ichimoku visual trend A

51.69049 71.08254
Ichimoku visual trend B

51.82615 72.0747
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 -4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator Otter Tail Corporation MGE Energy Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 33.92487 100.0
True Strength Index (TSI) -100.0 100.0
ultimate oscillator

50.0 88.98042
stochastic oscillator

128.0 145.09804
stochastic oscillator signal

128.0 145.09804
Williams %R rating

28.0 45.09804
awesome oscillator

0.21656 0.08247

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Otter Tail Corporation and MGE Energy Inc..

Daily return -0.51732 5.34555
Daily log return -0.17799 -0.16407
Cumulative return -0.17783 -0.16393

So there you have it: our deep, grueling analysis comparing Otter Tail Corporation and MGE Energy Inc. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s Otter Tail Corporation:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether OTTR is strong or weak. Again – this is not a reliable indication of whether Otter Tail Corporation is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with MGE Energy Inc.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Abigale Lormen

Abigale is a Masters in Business Administration by education. After completing her post-graduation, Abigale jumped the journalism bandwagon as a freelance journalist. Soon after that she landed a job of reporter and has been climbing the news industry ladder ever since to reach the post of editor at amarketreportsjournal.
Abigale Lormen

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