CMS Energy Corporation (CMS) vs Pinnacle West Capital Corporation (PNW)

CMS Energy Corporation and Pinnacle West Capital Corporation are both Utilities Regulated Electric companies. CMS Energy Corporation is the larger, with a market value of $22.2B against $12.6B — 1.8× the size. Pinnacle West Capital Corporation trades at the lower P/E: 19.0× against 33.3×. CMS Energy Corporation grew revenue faster over the last twelve months: 8.20% against 7.52%. Pinnacle West Capital Corporation has the higher net margin (11.6% vs 9.60%) and the higher return on invested capital (3.89% vs 2.58%). Both pay a dividend; CMS Energy Corporation yields more (4.00% vs 3.52%). Across the 22 metrics below, Pinnacle West Capital Corporation leads on 16 and CMS Energy Corporation on 6.

Valuation

Metric CMS PNW Utilities Regulated Electric median
P/E 33.27 18.98 19.45
P/S 2.46 2.21 2.78
P/B 2.19 1.67 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 16.07 8.64 12.40
EV/Sales 4.65 4.21 4.95
Earnings yield 3.01% 5.27% 5.12%
Free cash flow yield (7.90%) (4.19%) (5.93%)

Profitability

Metric CMS PNW Utilities Regulated Electric median
Gross margin 60.99% 61.91% 62.00%
Operating margin 13.77% 20.66% 21.72%
Net margin 9.60% 11.59% 13.45%
Free cash flow margin (19.42%) (9.25%) (11.71%)
Return on equity 8.94% 8.98% 9.94%
Return on assets 2.16% 2.09% 2.85%
Return on invested capital 2.58% 3.89% 3.95%

Growth

Metric CMS PNW Utilities Regulated Electric median
Revenue growth (TTM) 8.20% 7.52% 7.78%
EPS growth (last fiscal year) 6.01% (3.63%) 6.01%
Revenue growth, 5-year CAGR 5.88% 8.28% 6.72%
Net income growth, 5-year CAGR 7.04% 2.29% 6.50%

Health

Metric CMS PNW Utilities Regulated Electric median
Debt to equity 1.96 1.52 1.54
Current ratio 0.95 0.71 0.88
Net debt to EBITDA 6.03 4.22 5.27

Dividend

Metric CMS PNW Utilities Regulated Electric median
Dividend yield 4.00% 3.52% 3.16%
Payout ratio 1.33 0.68 0.63

Size

Metric CMS PNW Utilities Regulated Electric median
Market cap 22.17b 12.58b 26.54b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack