Pacific Gas & Electric Co. (PCG) vs WEC Energy Group, Inc. (WEC)

Pacific Gas & Electric Co. and WEC Energy Group, Inc. are both Utilities Regulated Electric companies. WEC Energy Group, Inc. is the larger, with a market value of $32.9B against $27.1B — 1.2× the size. Pacific Gas & Electric Co. trades at the lower P/E: 8.9× against 19.5×. WEC Energy Group, Inc. grew revenue faster over the last twelve months: 8.93% against 5.66%. WEC Energy Group, Inc. has the higher net margin (16.7% vs 11.8%) and the higher return on invested capital (3.86% vs 3.32%). Both pay a dividend; WEC Energy Group, Inc. yields more (4.31% vs 0.06%). Across the 22 metrics below, WEC Energy Group, Inc. leads on 13 and Pacific Gas & Electric Co. on 9.

Valuation

Metric PCG WEC Utilities Regulated Electric median
P/E 8.94 19.51 18.84
P/S 1.05 3.26 2.52
P/B 0.83 2.27 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 9.15 14.62 11.82
EV/Sales 3.49 5.52 4.58
Earnings yield 11.18% 5.13% 5.30%
Free cash flow yield (15.69%) (4.60%) (5.06%)

Profitability

Metric PCG WEC Utilities Regulated Electric median
Gross margin 84.30% 65.71% 66.28%
Operating margin 19.99% 22.84% 21.79%
Net margin 11.83% 16.69% 12.94%
Free cash flow margin (16.50%) (14.99%) (11.51%)
Return on equity 9.79% 12.00% 9.75%
Return on assets 2.17% 3.34% 2.75%
Return on invested capital 3.32% 3.86% 3.87%

Growth

Metric PCG WEC Utilities Regulated Electric median
Revenue growth (TTM) 5.66% 8.93% 7.43%
EPS growth (last fiscal year) 2.61% (0.41%) —
Revenue growth, 5-year CAGR 6.19% 6.24% 6.75%
Net income growth, 5-year CAGR 0.00% 5.36% 6.44%

Health

Metric PCG WEC Utilities Regulated Electric median
Debt to equity 1.88 1.58 1.53
Current ratio 1.22 0.53 0.81
Net debt to EBITDA 6.39 5.99 5.25

Dividend

Metric PCG WEC Utilities Regulated Electric median
Dividend yield 0.06% 4.31% 4.33%
Payout ratio 0.00 0.71 0.66

Size

Metric PCG WEC Utilities Regulated Electric median
Market cap 27.11b 32.88b 22.90b

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