CMS Energy Corporation (CMS) vs Fortis (FTS)

CMS Energy Corporation and Fortis are both Utilities Regulated Electric companies. Fortis is the larger, with a market value of $26.9B against $21.8B — 1.2× the size. CMS Energy Corporation trades at the lower P/E: 18.9× against 21.5×. CMS Energy Corporation grew revenue faster over the last twelve months: 9.93% against 5.32%. Fortis has the higher net margin (14.0% vs 11.5%) and the lower return on invested capital (3.46% vs 3.56%). Both pay a dividend; Fortis yields more (4.35% vs 3.68%). Across the 22 metrics below, CMS Energy Corporation leads on 15 and Fortis on 7.

Valuation

Metric CMS FTS Utilities Regulated Electric median
P/E 18.94 21.49 18.84
P/S 2.22 3.03 2.52
P/B 1.92 1.45 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.76 13.13 11.82
EV/Sales 4.37 5.93 4.58
Earnings yield 5.28% 4.65% 5.30%
Free cash flow yield (9.76%) (5.50%) (5.06%)

Profitability

Metric CMS FTS Utilities Regulated Electric median
Gross margin 61.16% 45.34% 66.28%
Operating margin 18.95% 28.32% 21.79%
Net margin 11.53% 14.00% 12.94%
Free cash flow margin (21.67%) (16.64%) (11.51%)
Return on equity 10.74% 6.96% 9.75%
Return on assets 2.59% 2.29% 2.75%
Return on invested capital 3.56% 3.46% 3.87%

Growth

Metric CMS FTS Utilities Regulated Electric median
Revenue growth (TTM) 9.93% 5.32% 7.43%
EPS growth (last fiscal year) 6.01% 3.09% —
Revenue growth, 5-year CAGR 5.88% 5.48% 6.75%
Net income growth, 5-year CAGR 7.04% 6.33% 6.44%

Health

Metric CMS FTS Utilities Regulated Electric median
Debt to equity 1.86 1.32 1.53
Current ratio 0.94 0.56 0.81
Net debt to EBITDA 6.03 6.17 5.25

Dividend

Metric CMS FTS Utilities Regulated Electric median
Dividend yield 3.68% 4.35% 4.33%
Payout ratio 0.76 0.75 0.66

Size

Metric CMS FTS Utilities Regulated Electric median
Market cap 21.76b 26.90b 22.90b

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