Fortis (FTS) vs Pacific Gas & Electric Co. (PCG)

Fortis and Pacific Gas & Electric Co. are both Utilities Regulated Electric companies. Fortis and Pacific Gas & Electric Co. are of similar size ($27.1B and $26.9B). Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 21.5×. Pacific Gas & Electric Co. grew revenue faster over the last twelve months: 5.66% against 5.32%. Fortis has the higher net margin (14.0% vs 11.8%) and the higher return on invested capital (3.46% vs 3.32%). Both pay a dividend; Fortis yields more (4.35% vs 0.06%). Across the 22 metrics below, Pacific Gas & Electric Co. leads on 12 and Fortis on 10.

Valuation

Metric FTS PCG Utilities Regulated Electric median
P/E 21.49 8.94 18.84
P/S 3.03 1.05 2.52
P/B 1.45 0.83 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.13 9.15 11.82
EV/Sales 5.93 3.49 4.58
Earnings yield 4.65% 11.18% 5.30%
Free cash flow yield (5.50%) (15.69%) (5.06%)

Profitability

Metric FTS PCG Utilities Regulated Electric median
Gross margin 45.34% 84.30% 66.28%
Operating margin 28.32% 19.99% 21.79%
Net margin 14.00% 11.83% 12.94%
Free cash flow margin (16.64%) (16.50%) (11.51%)
Return on equity 6.96% 9.79% 9.75%
Return on assets 2.29% 2.17% 2.75%
Return on invested capital 3.46% 3.32% 3.87%

Growth

Metric FTS PCG Utilities Regulated Electric median
Revenue growth (TTM) 5.32% 5.66% 7.43%
EPS growth (last fiscal year) 3.09% 2.61% —
Revenue growth, 5-year CAGR 5.48% 6.19% 6.75%
Net income growth, 5-year CAGR 6.33% 0.00% 6.44%

Health

Metric FTS PCG Utilities Regulated Electric median
Debt to equity 1.32 1.88 1.53
Current ratio 0.56 1.22 0.81
Net debt to EBITDA 6.17 6.39 5.25

Dividend

Metric FTS PCG Utilities Regulated Electric median
Dividend yield 4.35% 0.06% 4.33%
Payout ratio 0.75 0.00 0.66

Size

Metric FTS PCG Utilities Regulated Electric median
Market cap 26.90b 27.11b 22.90b

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