Entergy Corporation (ETR) vs Southern Company (The) (SO)

Entergy Corporation and Southern Company (The) are both Utilities Regulated Electric companies. Southern Company (The) is the larger, with a market value of $95.3B against $46.9B — 2.0× the size. Southern Company (The) trades at the lower P/E: 19.9× against 24.9×. Entergy Corporation grew revenue faster over the last twelve months: 9.55% against 6.40%. Southern Company (The) has the higher net margin (15.4% vs 13.3%) and the lower return on invested capital (4.05% vs 4.06%). Both pay a dividend; Entergy Corporation yields more (4.45% vs 4.15%). Across the 22 metrics below, Southern Company (The) leads on 16 and Entergy Corporation on 6.

Valuation

Metric ETR SO Utilities Regulated Electric median
P/E 24.89 19.88 18.84
P/S 3.35 3.12 2.52
P/B 2.48 2.23 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.07 12.07 11.82
EV/Sales 5.52 5.46 4.58
Earnings yield 4.02% 5.03% 5.30%
Free cash flow yield (6.55%) (3.47%) (5.06%)

Profitability

Metric ETR SO Utilities Regulated Electric median
Gross margin 70.78% 71.88% 66.28%
Operating margin 22.90% 24.21% 21.79%
Net margin 13.33% 15.43% 12.94%
Free cash flow margin (21.96%) (10.83%) (11.51%)
Return on equity 10.44% 11.69% 9.75%
Return on assets 2.44% 3.00% 2.75%
Return on invested capital 4.06% 4.05% 3.87%

Growth

Metric ETR SO Utilities Regulated Electric median
Revenue growth (TTM) 9.55% 6.40% 7.43%
EPS growth (last fiscal year) 59.59% (1.99%) —
Revenue growth, 5-year CAGR 5.06% 7.72% 6.75%
Net income growth, 5-year CAGR 4.84% 6.84% 6.44%

Health

Metric ETR SO Utilities Regulated Electric median
Debt to equity 1.80 1.73 1.53
Current ratio 0.91 0.79 0.81
Net debt to EBITDA 4.94 5.27 5.25

Dividend

Metric ETR SO Utilities Regulated Electric median
Dividend yield 4.45% 4.15% 4.33%
Payout ratio 0.64 0.98 0.66

Size

Metric ETR SO Utilities Regulated Electric median
Market cap 46.90b 95.28b 22.90b

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