FirstEnergy Corporation (FE) vs WEC Energy Group, Inc. (WEC)

FirstEnergy Corporation and WEC Energy Group, Inc. are both Utilities Regulated Electric companies. WEC Energy Group, Inc. is the larger, with a market value of $32.9B against $25.1B — 1.3× the size. WEC Energy Group, Inc. trades at the lower P/E: 19.5× against 23.0×. FirstEnergy Corporation grew revenue faster over the last twelve months: 12.6% against 8.93%. WEC Energy Group, Inc. has the higher net margin (16.7% vs 6.86%) and the higher return on invested capital (3.86% vs 3.34%). Both pay a dividend; FirstEnergy Corporation yields more (4.64% vs 4.31%). Across the 22 metrics below, WEC Energy Group, Inc. leads on 12 and FirstEnergy Corporation on 10.

Valuation

Metric FE WEC Utilities Regulated Electric median
P/E 23.05 19.51 18.84
P/S 1.58 3.26 2.52
P/B 1.74 2.27 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 14.61 14.62 11.82
EV/Sales 3.40 5.52 4.58
Earnings yield 4.34% 5.13% 5.30%
Free cash flow yield (7.80%) (4.60%) (5.06%)

Profitability

Metric FE WEC Utilities Regulated Electric median
Gross margin 63.48% 65.71% 66.28%
Operating margin 14.60% 22.84% 21.79%
Net margin 6.86% 16.69% 12.94%
Free cash flow margin (12.35%) (14.99%) (11.51%)
Return on equity 7.59% 12.00% 9.75%
Return on assets 1.93% 3.34% 2.75%
Return on invested capital 3.34% 3.86% 3.87%

Growth

Metric FE WEC Utilities Regulated Electric median
Revenue growth (TTM) 12.63% 8.93% 7.43%
EPS growth (last fiscal year) 3.53% (0.41%) —
Revenue growth, 5-year CAGR 6.94% 6.24% 6.75%
Net income growth, 5-year CAGR (1.12%) 5.36% 6.44%

Health

Metric FE WEC Utilities Regulated Electric median
Debt to equity 2.01 1.58 1.53
Current ratio 0.54 0.53 0.81
Net debt to EBITDA 7.04 5.99 5.25

Dividend

Metric FE WEC Utilities Regulated Electric median
Dividend yield 4.64% 4.31% 4.33%
Payout ratio 1.95 0.71 0.66

Size

Metric FE WEC Utilities Regulated Electric median
Market cap 25.11b 32.88b 22.90b

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