Public Service Enterprise Group Incorporated (PEG) vs Xcel Energy Inc. (XEL)

Public Service Enterprise Group Incorporated and Xcel Energy Inc. are both Utilities Regulated Electric companies. Xcel Energy Inc. is the larger, with a market value of $43.4B against $33.2B — 1.3× the size. Public Service Enterprise Group Incorporated trades at the lower P/E: 16.7× against 19.0×. Public Service Enterprise Group Incorporated grew revenue faster over the last twelve months: 12.7% against 4.72%. Public Service Enterprise Group Incorporated has the higher net margin (16.0% vs 15.3%) and the higher return on invested capital (4.35% vs 2.83%). Both pay a dividend; Public Service Enterprise Group Incorporated yields more (3.92% vs 3.79%). Across the 22 metrics below, Public Service Enterprise Group Incorporated leads on 18 and Xcel Energy Inc. on 4.

Valuation

Metric PEG XEL Utilities Regulated Electric median
P/E 16.67 19.02 18.84
P/S 2.66 2.98 2.52
P/B 1.93 1.81 1.63
Price to free cash flow 681.14 n/m 36.22
EV/EBITDA 12.60 13.89 11.82
EV/Sales 4.60 5.55 4.58
Earnings yield 6.00% 5.26% 5.30%
Free cash flow yield 0.15% (17.63%) (5.06%)

Profitability

Metric PEG XEL Utilities Regulated Electric median
Gross margin 63.96% 67.57% 66.28%
Operating margin 23.14% 19.08% 21.79%
Net margin 16.04% 15.28% 12.94%
Free cash flow margin 2.20% (52.63%) (11.51%)
Return on equity 11.84% 9.92% 9.75%
Return on assets 3.50% 2.75% 2.75%
Return on invested capital 4.35% 2.83% 3.87%

Growth

Metric PEG XEL Utilities Regulated Electric median
Revenue growth (TTM) 12.65% 4.72% 7.43%
EPS growth (last fiscal year) 19.21% (0.58%) —
Revenue growth, 5-year CAGR 4.85% 4.94% 6.75%
Net income growth, 5-year CAGR 2.07% 6.50% 6.44%

Health

Metric PEG XEL Utilities Regulated Electric median
Debt to equity 1.42 1.64 1.53
Current ratio 0.88 0.70 0.81
Net debt to EBITDA 5.20 5.93 5.25

Dividend

Metric PEG XEL Utilities Regulated Electric median
Dividend yield 3.92% 3.79% 4.33%
Payout ratio 0.40 0.64 0.66

Size

Metric PEG XEL Utilities Regulated Electric median
Market cap 33.15b 43.36b 22.90b

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