Pacific Gas & Electric Co. (PCG) vs PPL Corporation (PPL)

Pacific Gas & Electric Co. and PPL Corporation are both Utilities Regulated Electric companies. Pacific Gas & Electric Co. is the larger, with a market value of $27.1B against $24.1B — 1.1× the size. Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 18.8×. PPL Corporation grew revenue faster over the last twelve months: 6.72% against 5.66%. PPL Corporation has the higher net margin (13.5% vs 11.8%) and the higher return on invested capital (4.04% vs 3.32%). Both pay a dividend; PPL Corporation yields more (3.74% vs 0.06%). Across the 22 metrics below, Pacific Gas & Electric Co. leads on 11 and PPL Corporation on 11.

Valuation

Metric PCG PPL Utilities Regulated Electric median
P/E 8.94 18.84 18.84
P/S 1.05 2.56 2.52
P/B 0.83 1.60 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 9.15 11.71 11.82
EV/Sales 3.49 4.69 4.58
Earnings yield 11.18% 5.31% 5.30%
Free cash flow yield (15.69%) (8.37%) (5.06%)

Profitability

Metric PCG PPL Utilities Regulated Electric median
Gross margin 84.30% 68.62% 66.28%
Operating margin 19.99% 24.10% 21.79%
Net margin 11.83% 13.45% 12.94%
Free cash flow margin (16.50%) (21.20%) (11.51%)
Return on equity 9.79% 8.62% 9.75%
Return on assets 2.17% 2.85% 2.75%
Return on invested capital 3.32% 4.04% 3.87%

Growth

Metric PCG PPL Utilities Regulated Electric median
Revenue growth (TTM) 5.66% 6.72% 7.43%
EPS growth (last fiscal year) 2.61% 32.50% —
Revenue growth, 5-year CAGR 6.19% 10.56% 6.75%
Net income growth, 5-year CAGR 0.00% (4.30%) 6.44%

Health

Metric PCG PPL Utilities Regulated Electric median
Debt to equity 1.88 1.35 1.53
Current ratio 1.22 0.91 0.81
Net debt to EBITDA 6.39 5.16 5.25

Dividend

Metric PCG PPL Utilities Regulated Electric median
Dividend yield 0.06% 3.74% 4.33%
Payout ratio 0.00 0.96 0.66

Size

Metric PCG PPL Utilities Regulated Electric median
Market cap 27.11b 24.06b 22.90b

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