CenterPoint Energy, Inc. (CNP) vs PPL Corporation (PPL)

CenterPoint Energy, Inc. and PPL Corporation are both Utilities Regulated Electric companies. CenterPoint Energy, Inc. and PPL Corporation are of similar size ($24.3B and $24.1B). PPL Corporation trades at the lower P/E: 18.8× against 21.7×. CenterPoint Energy, Inc. grew revenue faster over the last twelve months: 7.10% against 6.72%. PPL Corporation has the higher net margin (13.5% vs 11.6%) and the higher return on invested capital (4.04% vs 3.89%). Both pay a dividend; PPL Corporation yields more (3.74% vs 2.76%). Across the 22 metrics below, PPL Corporation leads on 16 and CenterPoint Energy, Inc. on 6.

Valuation

Metric CNP PPL Utilities Regulated Electric median
P/E 21.67 18.84 18.84
P/S 2.52 2.56 2.52
P/B 2.07 1.60 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.41 11.71 11.82
EV/Sales 5.03 4.69 4.58
Earnings yield 4.61% 5.31% 5.30%
Free cash flow yield (12.61%) (8.37%) (5.06%)

Profitability

Metric CNP PPL Utilities Regulated Electric median
Gross margin 78.59% 68.62% 66.28%
Operating margin 23.24% 24.10% 21.79%
Net margin 11.61% 13.45% 12.94%
Free cash flow margin (31.73%) (21.20%) (11.51%)
Return on equity 9.82% 8.62% 9.75%
Return on assets 2.42% 2.85% 2.75%
Return on invested capital 3.89% 4.04% 3.87%

Growth

Metric CNP PPL Utilities Regulated Electric median
Revenue growth (TTM) 7.10% 6.72% 7.43%
EPS growth (last fiscal year) 1.27% 32.50% —
Revenue growth, 5-year CAGR 4.75% 10.56% 6.75%
Net income growth, 5-year CAGR 0.00% (4.30%) 6.44%

Health

Metric CNP PPL Utilities Regulated Electric median
Debt to equity 2.10 1.35 1.53
Current ratio 1.12 0.91 0.81
Net debt to EBITDA 6.16 5.16 5.25

Dividend

Metric CNP PPL Utilities Regulated Electric median
Dividend yield 2.76% 3.74% 4.33%
Payout ratio 0.64 0.96 0.66

Size

Metric CNP PPL Utilities Regulated Electric median
Market cap 24.25b 24.06b 22.90b

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