CenterPoint Energy, Inc. (CNP) vs FirstEnergy Corporation (FE)

CenterPoint Energy, Inc. and FirstEnergy Corporation are both Utilities Regulated Electric companies. CenterPoint Energy, Inc. and FirstEnergy Corporation are of similar size ($25.1B and $24.3B). CenterPoint Energy, Inc. trades at the lower P/E: 21.7× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 7.10%. CenterPoint Energy, Inc. has the higher net margin (11.6% vs 6.86%) and the higher return on invested capital (3.89% vs 3.34%). Both pay a dividend; FirstEnergy Corporation yields more (4.64% vs 2.76%). Across the 22 metrics below, CenterPoint Energy, Inc. leads on 12 and FirstEnergy Corporation on 10.

Valuation

Metric CNP FE Utilities Regulated Electric median
P/E 21.67 23.05 18.84
P/S 2.52 1.58 2.52
P/B 2.07 1.74 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.41 14.61 11.82
EV/Sales 5.03 3.40 4.58
Earnings yield 4.61% 4.34% 5.30%
Free cash flow yield (12.61%) (7.80%) (5.06%)

Profitability

Metric CNP FE Utilities Regulated Electric median
Gross margin 78.59% 63.48% 66.28%
Operating margin 23.24% 14.60% 21.79%
Net margin 11.61% 6.86% 12.94%
Free cash flow margin (31.73%) (12.35%) (11.51%)
Return on equity 9.82% 7.59% 9.75%
Return on assets 2.42% 1.93% 2.75%
Return on invested capital 3.89% 3.34% 3.87%

Growth

Metric CNP FE Utilities Regulated Electric median
Revenue growth (TTM) 7.10% 12.63% 7.43%
EPS growth (last fiscal year) 1.27% 3.53% —
Revenue growth, 5-year CAGR 4.75% 6.94% 6.75%
Net income growth, 5-year CAGR 0.00% (1.12%) 6.44%

Health

Metric CNP FE Utilities Regulated Electric median
Debt to equity 2.10 2.01 1.53
Current ratio 1.12 0.54 0.81
Net debt to EBITDA 6.16 7.04 5.25

Dividend

Metric CNP FE Utilities Regulated Electric median
Dividend yield 2.76% 4.64% 4.33%
Payout ratio 0.64 1.95 0.66

Size

Metric CNP FE Utilities Regulated Electric median
Market cap 24.25b 25.11b 22.90b

Compare with another peer

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