Ameren Corporation (AEE) vs Pacific Gas & Electric Co. (PCG)

Ameren Corporation and Pacific Gas & Electric Co. are both Utilities Regulated Electric companies. Ameren Corporation and Pacific Gas & Electric Co. are of similar size ($27.5B and $27.1B). Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 17.3×. Pacific Gas & Electric Co. grew revenue faster over the last twelve months: 5.66% against 3.76%. Ameren Corporation has the higher net margin (17.9% vs 11.8%) and the higher return on invested capital (3.95% vs 3.32%). Both pay a dividend; Ameren Corporation yields more (3.70% vs 0.06%). Across the 22 metrics below, Ameren Corporation leads on 12 and Pacific Gas & Electric Co. on 10.

Valuation

Metric AEE PCG Utilities Regulated Electric median
P/E 17.35 8.94 18.84
P/S 3.14 1.05 2.52
P/B 1.99 0.83 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.22 9.15 11.82
EV/Sales 5.50 3.49 4.58
Earnings yield 5.77% 11.18% 5.30%
Free cash flow yield (5.27%) (15.69%) (5.06%)

Profitability

Metric AEE PCG Utilities Regulated Electric median
Gross margin 73.71% 84.30% 66.28%
Operating margin 24.87% 19.99% 21.79%
Net margin 17.86% 11.83% 12.94%
Free cash flow margin (16.57%) (16.50%) (11.51%)
Return on equity 11.90% 9.79% 9.75%
Return on assets 3.19% 2.17% 2.75%
Return on invested capital 3.95% 3.32% 3.87%

Growth

Metric AEE PCG Utilities Regulated Electric median
Revenue growth (TTM) 3.76% 5.66% 7.43%
EPS growth (last fiscal year) 21.04% 2.61% —
Revenue growth, 5-year CAGR 8.72% 6.19% 6.75%
Net income growth, 5-year CAGR 10.82% 0.00% 6.44%

Health

Metric AEE PCG Utilities Regulated Electric median
Debt to equity 1.49 1.88 1.53
Current ratio 0.53 1.22 0.81
Net debt to EBITDA 5.16 6.39 5.25

Dividend

Metric AEE PCG Utilities Regulated Electric median
Dividend yield 3.70% 0.06% 4.33%
Payout ratio 0.57 0.00 0.66

Size

Metric AEE PCG Utilities Regulated Electric median
Market cap 27.46b 27.11b 22.90b

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