CenterPoint Energy, Inc. (CNP) vs Pacific Gas & Electric Co. (PCG)

CenterPoint Energy, Inc. and Pacific Gas & Electric Co. are both Utilities Regulated Electric companies. Pacific Gas & Electric Co. is the larger, with a market value of $27.1B against $24.3B — 1.1× the size. Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 21.7×. CenterPoint Energy, Inc. grew revenue faster over the last twelve months: 7.10% against 5.66%. Pacific Gas & Electric Co. has the higher net margin (11.8% vs 11.6%) and the lower return on invested capital (3.32% vs 3.89%). Both pay a dividend; CenterPoint Energy, Inc. yields more (2.76% vs 0.06%). Across the 21 metrics below, Pacific Gas & Electric Co. leads on 13 and CenterPoint Energy, Inc. on 8.

Valuation

Metric CNP PCG Utilities Regulated Electric median
P/E 21.67 8.94 18.84
P/S 2.52 1.05 2.52
P/B 2.07 0.83 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.41 9.15 11.82
EV/Sales 5.03 3.49 4.58
Earnings yield 4.61% 11.18% 5.30%
Free cash flow yield (12.61%) (15.69%) (5.06%)

Profitability

Metric CNP PCG Utilities Regulated Electric median
Gross margin 78.59% 84.30% 66.28%
Operating margin 23.24% 19.99% 21.79%
Net margin 11.61% 11.83% 12.94%
Free cash flow margin (31.73%) (16.50%) (11.51%)
Return on equity 9.82% 9.79% 9.75%
Return on assets 2.42% 2.17% 2.75%
Return on invested capital 3.89% 3.32% 3.87%

Growth

Metric CNP PCG Utilities Regulated Electric median
Revenue growth (TTM) 7.10% 5.66% 7.43%
EPS growth (last fiscal year) 1.27% 2.61% —
Revenue growth, 5-year CAGR 4.75% 6.19% 6.75%
Net income growth, 5-year CAGR 0.00% 0.00% 6.44%

Health

Metric CNP PCG Utilities Regulated Electric median
Debt to equity 2.10 1.88 1.53
Current ratio 1.12 1.22 0.81
Net debt to EBITDA 6.16 6.39 5.25

Dividend

Metric CNP PCG Utilities Regulated Electric median
Dividend yield 2.76% 0.06% 4.33%
Payout ratio 0.64 0.00 0.66

Size

Metric CNP PCG Utilities Regulated Electric median
Market cap 24.25b 27.11b 22.90b

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