NorthWestern Corporation (NWE) vs Pinnacle West Capital Corporation (PNW)

NorthWestern Corporation and Pinnacle West Capital Corporation are both Utilities Regulated Electric companies. Pinnacle West Capital Corporation is the larger, with a market value of $12.6B against $5.1B — 2.5× the size. Pinnacle West Capital Corporation trades at the lower P/E: 19.0× against 30.8×. NorthWestern Corporation grew revenue faster over the last twelve months: 10.1% against 7.52%. Pinnacle West Capital Corporation has the higher net margin (11.6% vs 9.48%) and the higher return on invested capital (3.89% vs 3.04%). Both pay a dividend; Pinnacle West Capital Corporation yields more (3.52% vs 3.26%). Across the 22 metrics below, Pinnacle West Capital Corporation leads on 17 and NorthWestern Corporation on 5.

Valuation

Metric NWE PNW Utilities Regulated Electric median
P/E 30.79 18.98 19.45
P/S 2.92 2.21 2.78
P/B 1.74 1.67 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 14.84 8.64 12.40
EV/Sales 4.99 4.21 4.95
Earnings yield 3.25% 5.27% 5.12%
Free cash flow yield (3.84%) (4.19%) (5.93%)

Profitability

Metric NWE PNW Utilities Regulated Electric median
Gross margin 0.00% 61.91% 62.00%
Operating margin 18.11% 20.66% 21.72%
Net margin 9.48% 11.59% 13.45%
Free cash flow margin (11.21%) (9.25%) (11.71%)
Return on equity 5.68% 8.98% 9.94%
Return on assets 1.91% 2.09% 2.85%
Return on invested capital 3.04% 3.89% 3.95%

Growth

Metric NWE PNW Utilities Regulated Electric median
Revenue growth (TTM) 10.09% 7.52% 7.78%
EPS growth (last fiscal year) (19.45%) (3.63%) 6.01%
Revenue growth, 5-year CAGR 6.09% 8.28% 6.72%
Net income growth, 5-year CAGR 3.13% 2.29% 6.50%

Health

Metric NWE PNW Utilities Regulated Electric median
Debt to equity 1.24 1.52 1.54
Current ratio 0.90 0.71 0.88
Net debt to EBITDA 5.61 4.22 5.27

Dividend

Metric NWE PNW Utilities Regulated Electric median
Dividend yield 3.26% 3.52% 3.16%
Payout ratio 1.01 0.68 0.63

Size

Metric NWE PNW Utilities Regulated Electric median
Market cap 5.05b 12.58b 26.54b

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