Eversource Energy (ES) vs Fortis (FTS)

Eversource Energy and Fortis are both Utilities Regulated Electric companies. Fortis is the larger, with a market value of $26.9B against $24.0B — 1.1× the size. Eversource Energy trades at the lower P/E: 16.5× against 21.5×. Eversource Energy grew revenue faster over the last twelve months: 7.75% against 5.32%. Fortis has the higher net margin (14.0% vs 10.4%) and the lower return on invested capital (3.46% vs 4.32%). Both pay a dividend; Eversource Energy yields more (5.00% vs 4.35%). Across the 22 metrics below, Eversource Energy leads on 18 and Fortis on 4.

Valuation

Metric ES FTS Utilities Regulated Electric median
P/E 16.49 21.49 18.84
P/S 1.71 3.03 2.52
P/B 1.47 1.45 1.63
Price to free cash flow 80.52 n/m 36.22
EV/EBITDA 9.68 13.13 11.82
EV/Sales 3.66 5.93 4.58
Earnings yield 6.06% 4.65% 5.30%
Free cash flow yield 1.24% (5.50%) (5.06%)

Profitability

Metric ES FTS Utilities Regulated Electric median
Gross margin 67.80% 45.34% 66.28%
Operating margin 21.55% 28.32% 21.79%
Net margin 10.35% 14.00% 12.94%
Free cash flow margin 2.13% (16.64%) (11.51%)
Return on equity 9.06% 6.96% 9.75%
Return on assets 2.33% 2.29% 2.75%
Return on invested capital 4.32% 3.46% 3.87%

Growth

Metric ES FTS Utilities Regulated Electric median
Revenue growth (TTM) 7.75% 5.32% 7.43%
EPS growth (last fiscal year) 100.88% 3.09% —
Revenue growth, 5-year CAGR 8.75% 5.48% 6.75%
Net income growth, 5-year CAGR 7.03% 6.33% 6.44%

Health

Metric ES FTS Utilities Regulated Electric median
Debt to equity 1.78 1.32 1.53
Current ratio 0.80 0.56 0.81
Net debt to EBITDA 5.22 6.17 5.25

Dividend

Metric ES FTS Utilities Regulated Electric median
Dividend yield 5.00% 4.35% 4.33%
Payout ratio 0.78 0.75 0.66

Size

Metric ES FTS Utilities Regulated Electric median
Market cap 24.03b 26.90b 22.90b

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