Edison International (EIX) vs FirstEnergy Corporation (FE)

Edison International and FirstEnergy Corporation are both Utilities Regulated Electric companies. FirstEnergy Corporation is the larger, with a market value of $25.1B against $20.3B — 1.2× the size. Edison International trades at the lower P/E: 5.4× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 10.7%. Edison International has the higher net margin (19.3% vs 6.86%) and the higher return on invested capital (6.48% vs 3.34%). Both pay a dividend; FirstEnergy Corporation yields more (4.64% vs 4.55%). Across the 22 metrics below, Edison International leads on 19 and FirstEnergy Corporation on 3.

Valuation

Metric EIX FE Utilities Regulated Electric median
P/E 5.41 23.05 18.84
P/S 1.04 1.58 2.52
P/B 1.07 1.74 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 6.35 14.61 11.82
EV/Sales 3.21 3.40 4.58
Earnings yield 18.48% 4.34% 5.30%
Free cash flow yield (1.92%) (7.80%) (5.06%)

Profitability

Metric EIX FE Utilities Regulated Electric median
Gross margin 75.10% 63.48% 66.28%
Operating margin 32.69% 14.60% 21.79%
Net margin 19.28% 6.86% 12.94%
Free cash flow margin (2.00%) (12.35%) (11.51%)
Return on equity 20.68% 7.59% 9.75%
Return on assets 4.05% 1.93% 2.75%
Return on invested capital 6.48% 3.34% 3.87%

Growth

Metric EIX FE Utilities Regulated Electric median
Revenue growth (TTM) 10.74% 12.63% 7.43%
EPS growth (last fiscal year) 248.94% 3.53% —
Revenue growth, 5-year CAGR 7.31% 6.94% 6.75%
Net income growth, 5-year CAGR 43.26% (1.12%) 6.44%

Health

Metric EIX FE Utilities Regulated Electric median
Debt to equity 2.22 2.01 1.53
Current ratio 0.66 0.54 0.81
Net debt to EBITDA 3.84 7.04 5.25

Dividend

Metric EIX FE Utilities Regulated Electric median
Dividend yield 4.55% 4.64% 4.33%
Payout ratio 1.17 1.95 0.66

Size

Metric EIX FE Utilities Regulated Electric median
Market cap 20.25b 25.11b 22.90b

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