Edison International (EIX) vs Pinnacle West Capital Corporation (PNW)

Edison International and Pinnacle West Capital Corporation are both Utilities Regulated Electric companies. Edison International is the larger, with a market value of $23.4B against $12.6B — 1.9× the size. Edison International trades at the lower P/E: 6.5× against 19.0×. Pinnacle West Capital Corporation grew revenue faster over the last twelve months: 7.52% against 2.60%. Edison International has the higher net margin (19.6% vs 11.6%) and the higher return on invested capital (6.06% vs 3.89%). Both pay a dividend; Edison International yields more (5.75% vs 3.52%). Across the 22 metrics below, Edison International leads on 19 and Pinnacle West Capital Corporation on 3.

Valuation

Metric EIX PNW Utilities Regulated Electric median
P/E 6.46 18.98 19.45
P/S 1.27 2.21 2.78
P/B 1.21 1.67 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 6.93 8.64 12.40
EV/Sales 3.50 4.21 4.95
Earnings yield 15.49% 5.27% 5.12%
Free cash flow yield (0.56%) (4.19%) (5.93%)

Profitability

Metric EIX PNW Utilities Regulated Electric median
Gross margin 74.02% 61.91% 62.00%
Operating margin 31.78% 20.66% 21.72%
Net margin 19.60% 11.59% 13.45%
Free cash flow margin (0.71%) (9.25%) (11.71%)
Return on equity 19.63% 8.98% 9.94%
Return on assets 3.88% 2.09% 2.85%
Return on invested capital 6.06% 3.89% 3.95%

Growth

Metric EIX PNW Utilities Regulated Electric median
Revenue growth (TTM) 2.60% 7.52% 7.78%
EPS growth (last fiscal year) 248.94% (3.63%) 6.01%
Revenue growth, 5-year CAGR 7.31% 8.28% 6.72%
Net income growth, 5-year CAGR 43.26% 2.29% 6.50%

Health

Metric EIX PNW Utilities Regulated Electric median
Debt to equity 2.14 1.52 1.54
Current ratio 0.77 0.71 0.88
Net debt to EBITDA 3.84 4.22 5.27

Dividend

Metric EIX PNW Utilities Regulated Electric median
Dividend yield 5.75% 3.52% 3.16%
Payout ratio 0.37 0.68 0.63

Size

Metric EIX PNW Utilities Regulated Electric median
Market cap 23.43b 12.58b 26.54b

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