CenterPoint Energy, Inc. (CNP) vs Edison International (EIX)

CenterPoint Energy, Inc. and Edison International are both Utilities Regulated Electric companies. CenterPoint Energy, Inc. is the larger, with a market value of $24.3B against $20.3B — 1.2× the size. Edison International trades at the lower P/E: 5.4× against 21.7×. Edison International grew revenue faster over the last twelve months: 10.7% against 7.10%. Edison International has the higher net margin (19.3% vs 11.6%) and the higher return on invested capital (6.48% vs 3.89%). Both pay a dividend; Edison International yields more (4.55% vs 2.76%). Across the 22 metrics below, Edison International leads on 19 and CenterPoint Energy, Inc. on 3.

Valuation

Metric CNP EIX Utilities Regulated Electric median
P/E 21.67 5.41 18.84
P/S 2.52 1.04 2.52
P/B 2.07 1.07 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.41 6.35 11.82
EV/Sales 5.03 3.21 4.58
Earnings yield 4.61% 18.48% 5.30%
Free cash flow yield (12.61%) (1.92%) (5.06%)

Profitability

Metric CNP EIX Utilities Regulated Electric median
Gross margin 78.59% 75.10% 66.28%
Operating margin 23.24% 32.69% 21.79%
Net margin 11.61% 19.28% 12.94%
Free cash flow margin (31.73%) (2.00%) (11.51%)
Return on equity 9.82% 20.68% 9.75%
Return on assets 2.42% 4.05% 2.75%
Return on invested capital 3.89% 6.48% 3.87%

Growth

Metric CNP EIX Utilities Regulated Electric median
Revenue growth (TTM) 7.10% 10.74% 7.43%
EPS growth (last fiscal year) 1.27% 248.94% —
Revenue growth, 5-year CAGR 4.75% 7.31% 6.75%
Net income growth, 5-year CAGR 0.00% 43.26% 6.44%

Health

Metric CNP EIX Utilities Regulated Electric median
Debt to equity 2.10 2.22 1.53
Current ratio 1.12 0.66 0.81
Net debt to EBITDA 6.16 3.84 5.25

Dividend

Metric CNP EIX Utilities Regulated Electric median
Dividend yield 2.76% 4.55% 4.33%
Payout ratio 0.64 1.17 0.66

Size

Metric CNP EIX Utilities Regulated Electric median
Market cap 24.25b 20.25b 22.90b

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