CMS Energy Corporation (CMS) vs FirstEnergy Corporation (FE)

CMS Energy Corporation and FirstEnergy Corporation are both Utilities Regulated Electric companies. FirstEnergy Corporation is the larger, with a market value of $25.1B against $21.8B — 1.2× the size. CMS Energy Corporation trades at the lower P/E: 18.9× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 9.93%. CMS Energy Corporation has the higher net margin (11.5% vs 6.86%) and the higher return on invested capital (3.56% vs 3.34%). Both pay a dividend; FirstEnergy Corporation yields more (4.64% vs 3.68%). Across the 22 metrics below, CMS Energy Corporation leads on 13 and FirstEnergy Corporation on 9.

Valuation

Metric CMS FE Utilities Regulated Electric median
P/E 18.94 23.05 18.84
P/S 2.22 1.58 2.52
P/B 1.92 1.74 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.76 14.61 11.82
EV/Sales 4.37 3.40 4.58
Earnings yield 5.28% 4.34% 5.30%
Free cash flow yield (9.76%) (7.80%) (5.06%)

Profitability

Metric CMS FE Utilities Regulated Electric median
Gross margin 61.16% 63.48% 66.28%
Operating margin 18.95% 14.60% 21.79%
Net margin 11.53% 6.86% 12.94%
Free cash flow margin (21.67%) (12.35%) (11.51%)
Return on equity 10.74% 7.59% 9.75%
Return on assets 2.59% 1.93% 2.75%
Return on invested capital 3.56% 3.34% 3.87%

Growth

Metric CMS FE Utilities Regulated Electric median
Revenue growth (TTM) 9.93% 12.63% 7.43%
EPS growth (last fiscal year) 6.01% 3.53% —
Revenue growth, 5-year CAGR 5.88% 6.94% 6.75%
Net income growth, 5-year CAGR 7.04% (1.12%) 6.44%

Health

Metric CMS FE Utilities Regulated Electric median
Debt to equity 1.86 2.01 1.53
Current ratio 0.94 0.54 0.81
Net debt to EBITDA 6.03 7.04 5.25

Dividend

Metric CMS FE Utilities Regulated Electric median
Dividend yield 3.68% 4.64% 4.33%
Payout ratio 0.76 1.95 0.66

Size

Metric CMS FE Utilities Regulated Electric median
Market cap 21.76b 25.11b 22.90b

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