Evergy Inc. (EVRG) vs PPL Corporation (PPL)

Evergy Inc. and PPL Corporation are both Utilities Regulated Electric companies. PPL Corporation is the larger, with a market value of $24.1B against $17.9B — 1.3× the size. PPL Corporation trades at the lower P/E: 18.8× against 19.4×. PPL Corporation grew revenue faster over the last twelve months: 6.72% against 3.63%. Evergy Inc. has the higher net margin (15.2% vs 13.5%) and the higher return on invested capital (4.15% vs 4.04%). Both pay a dividend; Evergy Inc. yields more (5.10% vs 3.74%). Across the 22 metrics below, Evergy Inc. leads on 11 and PPL Corporation on 11.

Valuation

Metric EVRG PPL Utilities Regulated Electric median
P/E 19.41 18.84 18.84
P/S 2.96 2.56 2.52
P/B 1.75 1.60 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 11.00 11.71 11.82
EV/Sales 5.22 4.69 4.58
Earnings yield 5.15% 5.31% 5.30%
Free cash flow yield (7.80%) (8.37%) (5.06%)

Profitability

Metric EVRG PPL Utilities Regulated Electric median
Gross margin 69.31% 68.62% 66.28%
Operating margin 26.20% 24.10% 21.79%
Net margin 15.19% 13.45% 12.94%
Free cash flow margin (23.07%) (21.20%) (11.51%)
Return on equity 9.13% 8.62% 9.75%
Return on assets 2.71% 2.85% 2.75%
Return on invested capital 4.15% 4.04% 3.87%

Growth

Metric EVRG PPL Utilities Regulated Electric median
Revenue growth (TTM) 3.63% 6.72% 7.43%
EPS growth (last fiscal year) (3.43%) 32.50% —
Revenue growth, 5-year CAGR 3.94% 10.56% 6.75%
Net income growth, 5-year CAGR 6.71% (4.30%) 6.44%

Health

Metric EVRG PPL Utilities Regulated Electric median
Debt to equity 1.34 1.35 1.53
Current ratio 0.36 0.91 0.81
Net debt to EBITDA 4.80 5.16 5.25

Dividend

Metric EVRG PPL Utilities Regulated Electric median
Dividend yield 5.10% 3.74% 4.33%
Payout ratio 0.73 0.96 0.66

Size

Metric EVRG PPL Utilities Regulated Electric median
Market cap 17.90b 24.06b 22.90b

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