NorthWestern Corporation (NWE) vs OGE Energy Corporation (OGE)

NorthWestern Corporation and OGE Energy Corporation are both Utilities Regulated Electric companies. OGE Energy Corporation is the larger, with a market value of $9.7B against $4.5B — 2.1× the size. OGE Energy Corporation trades at the lower P/E: 20.8× against 26.9×. NorthWestern Corporation grew revenue faster over the last twelve months: 10.7% against 0.63%. OGE Energy Corporation has the higher net margin (14.4% vs 10.1%) and the higher return on invested capital (4.53% vs 3.13%). Both pay a dividend; OGE Energy Corporation yields more (3.58% vs 3.57%). Across the 22 metrics below, OGE Energy Corporation leads on 15 and NorthWestern Corporation on 7.

Valuation

Metric NWE OGE Utilities Regulated Electric median
P/E 26.88 20.76 19.47
P/S 2.72 3.03 2.78
P/B 1.59 1.97 1.77
Price to free cash flow n/m 35.79 38.27
EV/EBITDA 13.88 11.68 12.25
EV/Sales 4.77 4.84 4.74
Earnings yield 3.72% 4.82% 5.02%
Free cash flow yield (4.18%) 2.79% (5.09%)

Profitability

Metric NWE OGE Utilities Regulated Electric median
Gross margin 74.48% 62.01% 66.28%
Operating margin 18.84% 24.24% 21.79%
Net margin 10.13% 14.43% 12.94%
Free cash flow margin (11.36%) 8.48% (11.51%)
Return on equity 5.94% 9.70% 9.75%
Return on assets 2.04% 3.25% 2.75%
Return on invested capital 3.13% 4.53% 3.87%

Growth

Metric NWE OGE Utilities Regulated Electric median
Revenue growth (TTM) 10.69% 0.63% 7.43%
EPS growth (last fiscal year) (19.45%) 5.94% 7.45%
Revenue growth, 5-year CAGR 6.09% 8.96% 6.75%
Net income growth, 5-year CAGR 3.13% 0.00% 6.44%

Health

Metric NWE OGE Utilities Regulated Electric median
Debt to equity 1.21 1.17 1.53
Current ratio 0.83 0.77 0.81
Net debt to EBITDA 5.61 4.16 5.25

Dividend

Metric NWE OGE Utilities Regulated Electric median
Dividend yield 3.57% 3.58% 3.29%
Payout ratio 0.96 0.75 0.66

Size

Metric NWE OGE Utilities Regulated Electric median
Market cap 4.54b 9.72b 23.14b

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