Ameren Corporation (AEE) vs Eversource Energy (ES)

Ameren Corporation and Eversource Energy are both Utilities Regulated Electric companies. Ameren Corporation is the larger, with a market value of $27.5B against $24.0B — 1.1× the size. Eversource Energy trades at the lower P/E: 16.5× against 17.3×. Eversource Energy grew revenue faster over the last twelve months: 7.75% against 3.76%. Ameren Corporation has the higher net margin (17.9% vs 10.4%) and the lower return on invested capital (3.95% vs 4.32%). Both pay a dividend; Eversource Energy yields more (5.00% vs 3.70%). Across the 22 metrics below, Eversource Energy leads on 14 and Ameren Corporation on 8.

Valuation

Metric AEE ES Utilities Regulated Electric median
P/E 17.35 16.49 18.84
P/S 3.14 1.71 2.52
P/B 1.99 1.47 1.63
Price to free cash flow n/m 80.52 36.22
EV/EBITDA 12.22 9.68 11.82
EV/Sales 5.50 3.66 4.58
Earnings yield 5.77% 6.06% 5.30%
Free cash flow yield (5.27%) 1.24% (5.06%)

Profitability

Metric AEE ES Utilities Regulated Electric median
Gross margin 73.71% 67.80% 66.28%
Operating margin 24.87% 21.55% 21.79%
Net margin 17.86% 10.35% 12.94%
Free cash flow margin (16.57%) 2.13% (11.51%)
Return on equity 11.90% 9.06% 9.75%
Return on assets 3.19% 2.33% 2.75%
Return on invested capital 3.95% 4.32% 3.87%

Growth

Metric AEE ES Utilities Regulated Electric median
Revenue growth (TTM) 3.76% 7.75% 7.43%
EPS growth (last fiscal year) 21.04% 100.88% —
Revenue growth, 5-year CAGR 8.72% 8.75% 6.75%
Net income growth, 5-year CAGR 10.82% 7.03% 6.44%

Health

Metric AEE ES Utilities Regulated Electric median
Debt to equity 1.49 1.78 1.53
Current ratio 0.53 0.80 0.81
Net debt to EBITDA 5.16 5.22 5.25

Dividend

Metric AEE ES Utilities Regulated Electric median
Dividend yield 3.70% 5.00% 4.33%
Payout ratio 0.57 0.78 0.66

Size

Metric AEE ES Utilities Regulated Electric median
Market cap 27.46b 24.03b 22.90b

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