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 ($27.1B and $26.5B). PPL Corporation trades at the lower P/E: 21.2× against 22.8×. CenterPoint Energy, Inc. grew revenue faster over the last twelve months: 7.78% against 6.72%. PPL Corporation has the higher net margin (13.5% vs 11.8%) and the lower return on invested capital (4.04% vs 4.16%). Both pay a dividend; PPL Corporation yields more (3.14% vs 2.31%). Across the 22 metrics below, PPL Corporation leads on 13 and CenterPoint Energy, Inc. on 9.

Valuation

Metric CNP PPL Utilities Regulated Electric median
P/E 22.76 21.15 19.45
P/S 2.68 2.88 2.78
P/B 2.24 1.80 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 12.31 12.50 12.40
EV/Sales 5.16 5.01 4.95
Earnings yield 4.39% 4.73% 5.12%
Free cash flow yield (12.08%) (7.46%) (5.93%)

Profitability

Metric CNP PPL Utilities Regulated Electric median
Gross margin 79.35% 68.62% 62.00%
Operating margin 24.44% 24.10% 21.72%
Net margin 11.76% 13.45% 13.45%
Free cash flow margin (32.40%) (21.20%) (11.71%)
Return on equity 10.14% 8.62% 9.94%
Return on assets 2.44% 2.85% 2.85%
Return on invested capital 4.16% 4.04% 3.95%

Growth

Metric CNP PPL Utilities Regulated Electric median
Revenue growth (TTM) 7.78% 6.72% 7.78%
EPS growth (last fiscal year) 1.27% 32.50% 6.01%
Revenue growth, 5-year CAGR 4.75% 10.56% 6.72%
Net income growth, 5-year CAGR 0.00% (4.30%) 6.50%

Health

Metric CNP PPL Utilities Regulated Electric median
Debt to equity 2.12 1.35 1.54
Current ratio 1.15 0.91 0.88
Net debt to EBITDA 6.16 5.16 5.27

Dividend

Metric CNP PPL Utilities Regulated Electric median
Dividend yield 2.31% 3.14% 3.16%
Payout ratio 0.53 0.67 0.63

Size

Metric CNP PPL Utilities Regulated Electric median
Market cap 26.50b 27.09b 26.54b

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