FirstEnergy Corporation (FE) vs Pacific Gas & Electric Co. (PCG)

FirstEnergy Corporation and Pacific Gas & Electric Co. are both Utilities Regulated Electric companies. FirstEnergy Corporation and Pacific Gas & Electric Co. are of similar size ($27.1B and $25.1B). Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 5.66%. Pacific Gas & Electric Co. has the higher net margin (11.8% vs 6.86%) and the lower return on invested capital (3.32% vs 3.34%). Both pay a dividend; FirstEnergy Corporation yields more (4.64% vs 0.06%). Across the 22 metrics below, Pacific Gas & Electric Co. leads on 14 and FirstEnergy Corporation on 8.

Valuation

Metric FE PCG Utilities Regulated Electric median
P/E 23.05 8.94 18.84
P/S 1.58 1.05 2.52
P/B 1.74 0.83 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 14.61 9.15 11.82
EV/Sales 3.40 3.49 4.58
Earnings yield 4.34% 11.18% 5.30%
Free cash flow yield (7.80%) (15.69%) (5.06%)

Profitability

Metric FE PCG Utilities Regulated Electric median
Gross margin 63.48% 84.30% 66.28%
Operating margin 14.60% 19.99% 21.79%
Net margin 6.86% 11.83% 12.94%
Free cash flow margin (12.35%) (16.50%) (11.51%)
Return on equity 7.59% 9.79% 9.75%
Return on assets 1.93% 2.17% 2.75%
Return on invested capital 3.34% 3.32% 3.87%

Growth

Metric FE PCG Utilities Regulated Electric median
Revenue growth (TTM) 12.63% 5.66% 7.43%
EPS growth (last fiscal year) 3.53% 2.61% —
Revenue growth, 5-year CAGR 6.94% 6.19% 6.75%
Net income growth, 5-year CAGR (1.12%) 0.00% 6.44%

Health

Metric FE PCG Utilities Regulated Electric median
Debt to equity 2.01 1.88 1.53
Current ratio 0.54 1.22 0.81
Net debt to EBITDA 7.04 6.39 5.25

Dividend

Metric FE PCG Utilities Regulated Electric median
Dividend yield 4.64% 0.06% 4.33%
Payout ratio 1.95 0.00 0.66

Size

Metric FE PCG Utilities Regulated Electric median
Market cap 25.11b 27.11b 22.90b

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