IDACORP, Inc. (IDA) vs Pinnacle West Capital Corporation (PNW)

IDACORP, Inc. and Pinnacle West Capital Corporation are both Utilities Regulated Electric companies. Pinnacle West Capital Corporation is the larger, with a market value of $11.0B against $7.4B — 1.5× the size. Pinnacle West Capital Corporation trades at the lower P/E: 17.2× against 21.1×. Pinnacle West Capital Corporation grew revenue faster over the last twelve months: 5.69% against −0.39%. IDACORP, Inc. has the higher net margin (18.8% vs 11.5%) and the lower return on invested capital (3.42% vs 3.86%). Both pay a dividend; Pinnacle West Capital Corporation yields more (5.26% vs 3.62%). Across the 22 metrics below, Pinnacle West Capital Corporation leads on 13 and IDACORP, Inc. on 9.

Valuation

Metric IDA PNW Utilities Regulated Electric median
P/E 21.07 17.24 18.84
P/S 4.02 2.00 2.52
P/B 1.91 1.57 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.06 8.40 11.82
EV/Sales 6.07 4.05 4.58
Earnings yield 4.75% 5.80% 5.30%
Free cash flow yield (12.89%) (4.52%) (5.06%)

Profitability

Metric IDA PNW Utilities Regulated Electric median
Gross margin 68.13% 62.70% 66.28%
Operating margin 22.75% 20.52% 21.79%
Net margin 18.78% 11.52% 12.94%
Free cash flow margin (51.75%) (9.05%) (11.51%)
Return on equity 9.42% 9.21% 9.75%
Return on assets 3.26% 2.07% 2.75%
Return on invested capital 3.42% 3.86% 3.87%

Growth

Metric IDA PNW Utilities Regulated Electric median
Revenue growth (TTM) (0.39%) 5.69% 7.43%
EPS growth (last fiscal year) 7.27% (3.63%) —
Revenue growth, 5-year CAGR 6.06% 8.28% 6.75%
Net income growth, 5-year CAGR 6.38% 2.29% 6.44%

Health

Metric IDA PNW Utilities Regulated Electric median
Debt to equity 1.00 1.61 1.53
Current ratio 0.99 0.59 0.81
Net debt to EBITDA 5.28 4.22 5.25

Dividend

Metric IDA PNW Utilities Regulated Electric median
Dividend yield 3.62% 5.26% 4.33%
Payout ratio 0.58 0.97 0.66

Size

Metric IDA PNW Utilities Regulated Electric median
Market cap 7.39b 11.04b 22.90b

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