Eversource Energy (ES) vs FirstEnergy Corporation (FE)

Eversource Energy and FirstEnergy Corporation are both Utilities Regulated Electric companies. Eversource Energy and FirstEnergy Corporation are of similar size ($25.1B and $24.0B). Eversource Energy trades at the lower P/E: 16.5× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 7.75%. Eversource Energy has the higher net margin (10.4% vs 6.86%) and the higher return on invested capital (4.32% vs 3.34%). Both pay a dividend; Eversource Energy yields more (5.00% vs 4.64%). Across the 22 metrics below, Eversource Energy leads on 19 and FirstEnergy Corporation on 3.

Valuation

Metric ES FE Utilities Regulated Electric median
P/E 16.49 23.05 18.84
P/S 1.71 1.58 2.52
P/B 1.47 1.74 1.63
Price to free cash flow 80.52 n/m 36.22
EV/EBITDA 9.68 14.61 11.82
EV/Sales 3.66 3.40 4.58
Earnings yield 6.06% 4.34% 5.30%
Free cash flow yield 1.24% (7.80%) (5.06%)

Profitability

Metric ES FE Utilities Regulated Electric median
Gross margin 67.80% 63.48% 66.28%
Operating margin 21.55% 14.60% 21.79%
Net margin 10.35% 6.86% 12.94%
Free cash flow margin 2.13% (12.35%) (11.51%)
Return on equity 9.06% 7.59% 9.75%
Return on assets 2.33% 1.93% 2.75%
Return on invested capital 4.32% 3.34% 3.87%

Growth

Metric ES FE Utilities Regulated Electric median
Revenue growth (TTM) 7.75% 12.63% 7.43%
EPS growth (last fiscal year) 100.88% 3.53% —
Revenue growth, 5-year CAGR 8.75% 6.94% 6.75%
Net income growth, 5-year CAGR 7.03% (1.12%) 6.44%

Health

Metric ES FE Utilities Regulated Electric median
Debt to equity 1.78 2.01 1.53
Current ratio 0.80 0.54 0.81
Net debt to EBITDA 5.22 7.04 5.25

Dividend

Metric ES FE Utilities Regulated Electric median
Dividend yield 5.00% 4.64% 4.33%
Payout ratio 0.78 1.95 0.66

Size

Metric ES FE Utilities Regulated Electric median
Market cap 24.03b 25.11b 22.90b

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