Fortis (FTS) vs PPL Corporation (PPL)

Fortis and PPL Corporation are both Utilities Regulated Electric companies. Fortis is the larger, with a market value of $26.9B against $24.1B — 1.1× the size. PPL Corporation trades at the lower P/E: 18.8× against 21.5×. PPL Corporation grew revenue faster over the last twelve months: 6.72% against 5.32%. Fortis has the higher net margin (14.0% vs 13.5%) and the lower return on invested capital (3.46% vs 4.04%). Both pay a dividend; Fortis yields more (4.35% vs 3.74%). Across the 22 metrics below, PPL Corporation leads on 14 and Fortis on 8.

Valuation

Metric FTS PPL Utilities Regulated Electric median
P/E 21.49 18.84 18.84
P/S 3.03 2.56 2.52
P/B 1.45 1.60 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.13 11.71 11.82
EV/Sales 5.93 4.69 4.58
Earnings yield 4.65% 5.31% 5.30%
Free cash flow yield (5.50%) (8.37%) (5.06%)

Profitability

Metric FTS PPL Utilities Regulated Electric median
Gross margin 45.34% 68.62% 66.28%
Operating margin 28.32% 24.10% 21.79%
Net margin 14.00% 13.45% 12.94%
Free cash flow margin (16.64%) (21.20%) (11.51%)
Return on equity 6.96% 8.62% 9.75%
Return on assets 2.29% 2.85% 2.75%
Return on invested capital 3.46% 4.04% 3.87%

Growth

Metric FTS PPL Utilities Regulated Electric median
Revenue growth (TTM) 5.32% 6.72% 7.43%
EPS growth (last fiscal year) 3.09% 32.50% —
Revenue growth, 5-year CAGR 5.48% 10.56% 6.75%
Net income growth, 5-year CAGR 6.33% (4.30%) 6.44%

Health

Metric FTS PPL Utilities Regulated Electric median
Debt to equity 1.32 1.35 1.53
Current ratio 0.56 0.91 0.81
Net debt to EBITDA 6.17 5.16 5.25

Dividend

Metric FTS PPL Utilities Regulated Electric median
Dividend yield 4.35% 3.74% 4.33%
Payout ratio 0.75 0.96 0.66

Size

Metric FTS PPL Utilities Regulated Electric median
Market cap 26.90b 24.06b 22.90b

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