Pacific Gas & Electric Co. (PCG) vs Public Service Enterprise Group Incorporated (PEG)

Pacific Gas & Electric Co. and Public Service Enterprise Group Incorporated are both Utilities Regulated Electric companies. Public Service Enterprise Group Incorporated is the larger, with a market value of $33.2B against $27.1B — 1.2× the size. Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 16.7×. Public Service Enterprise Group Incorporated grew revenue faster over the last twelve months: 12.7% against 5.66%. Public Service Enterprise Group Incorporated has the higher net margin (16.0% vs 11.8%) and the higher return on invested capital (4.35% vs 3.32%). Both pay a dividend; Public Service Enterprise Group Incorporated yields more (3.92% vs 0.06%). Across the 22 metrics below, Public Service Enterprise Group Incorporated leads on 13 and Pacific Gas & Electric Co. on 9.

Valuation

Metric PCG PEG Utilities Regulated Electric median
P/E 8.94 16.67 18.84
P/S 1.05 2.66 2.52
P/B 0.83 1.93 1.63
Price to free cash flow n/m 681.14 36.22
EV/EBITDA 9.15 12.60 11.82
EV/Sales 3.49 4.60 4.58
Earnings yield 11.18% 6.00% 5.30%
Free cash flow yield (15.69%) 0.15% (5.06%)

Profitability

Metric PCG PEG Utilities Regulated Electric median
Gross margin 84.30% 63.96% 66.28%
Operating margin 19.99% 23.14% 21.79%
Net margin 11.83% 16.04% 12.94%
Free cash flow margin (16.50%) 2.20% (11.51%)
Return on equity 9.79% 11.84% 9.75%
Return on assets 2.17% 3.50% 2.75%
Return on invested capital 3.32% 4.35% 3.87%

Growth

Metric PCG PEG Utilities Regulated Electric median
Revenue growth (TTM) 5.66% 12.65% 7.43%
EPS growth (last fiscal year) 2.61% 19.21% —
Revenue growth, 5-year CAGR 6.19% 4.85% 6.75%
Net income growth, 5-year CAGR 0.00% 2.07% 6.44%

Health

Metric PCG PEG Utilities Regulated Electric median
Debt to equity 1.88 1.42 1.53
Current ratio 1.22 0.88 0.81
Net debt to EBITDA 6.39 5.20 5.25

Dividend

Metric PCG PEG Utilities Regulated Electric median
Dividend yield 0.06% 3.92% 4.33%
Payout ratio 0.00 0.40 0.66

Size

Metric PCG PEG Utilities Regulated Electric median
Market cap 27.11b 33.15b 22.90b

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