FirstEnergy Corporation (FE) vs Public Service Enterprise Group Incorporated (PEG)

FirstEnergy Corporation and Public Service Enterprise Group Incorporated are both Utilities Regulated Electric companies. Public Service Enterprise Group Incorporated is the larger, with a market value of $36.4B against $27.3B — 1.3× the size. Public Service Enterprise Group Incorporated trades at the lower P/E: 20.7× against 22.6×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.2% against 5.28%. Public Service Enterprise Group Incorporated has the higher net margin (14.3% vs 7.40%) and the higher return on invested capital (3.96% vs 3.40%). Both pay a dividend; FirstEnergy Corporation yields more (4.86% vs 3.61%). Across the 21 metrics below, Public Service Enterprise Group Incorporated leads on 14 and FirstEnergy Corporation on 7.

Valuation

Metric FE PEG Utilities Regulated Electric median
P/E 22.62 20.66 19.45
P/S 1.68 2.95 2.78
P/B 1.88 2.09 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 13.92 13.96 12.40
EV/Sales 3.52 4.96 4.95
Earnings yield 4.42% 4.84% 5.12%
Free cash flow yield (7.93%) (1.10%) (5.93%)

Profitability

Metric FE PEG Utilities Regulated Electric median
Gross margin 63.43% 63.43% 62.00%
Operating margin 14.88% 21.63% 21.72%
Net margin 7.40% 14.31% 13.45%
Free cash flow margin (13.30%) (1.40%) (11.71%)
Return on equity 8.37% 10.28% 9.94%
Return on assets 2.08% 3.01% 2.85%
Return on invested capital 3.40% 3.96% 3.95%

Growth

Metric FE PEG Utilities Regulated Electric median
Revenue growth (TTM) 12.20% 5.28% 7.78%
EPS growth (last fiscal year) 3.53% 19.21% 6.01%
Revenue growth, 5-year CAGR 6.94% 4.85% 6.72%
Net income growth, 5-year CAGR (1.12%) 2.07% 6.50%

Health

Metric FE PEG Utilities Regulated Electric median
Debt to equity 2.07 1.48 1.54
Current ratio 0.38 1.01 0.88
Net debt to EBITDA 7.04 5.20 5.27

Dividend

Metric FE PEG Utilities Regulated Electric median
Dividend yield 4.86% 3.61% 3.16%
Payout ratio 1.10 0.75 0.63

Size

Metric FE PEG Utilities Regulated Electric median
Market cap 27.27b 36.44b 26.54b

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