Southern Company (The) (SO) vs Xcel Energy Inc. (XEL)

Southern Company (The) and Xcel Energy Inc. are both Utilities Regulated Electric companies. Southern Company (The) is the larger, with a market value of $95.3B against $43.4B — 2.2× the size. Xcel Energy Inc. trades at the lower P/E: 19.0× against 19.9×. Southern Company (The) grew revenue faster over the last twelve months: 6.40% against 4.72%. Southern Company (The) has the higher net margin (15.4% vs 15.3%) and the higher return on invested capital (4.05% vs 2.83%). Both pay a dividend; Southern Company (The) yields more (4.15% vs 3.79%). Across the 22 metrics below, Southern Company (The) leads on 16 and Xcel Energy Inc. on 6.

Valuation

Metric SO XEL Utilities Regulated Electric median
P/E 19.88 19.02 18.84
P/S 3.12 2.98 2.52
P/B 2.23 1.81 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 12.07 13.89 11.82
EV/Sales 5.46 5.55 4.58
Earnings yield 5.03% 5.26% 5.30%
Free cash flow yield (3.47%) (17.63%) (5.06%)

Profitability

Metric SO XEL Utilities Regulated Electric median
Gross margin 71.88% 67.57% 66.28%
Operating margin 24.21% 19.08% 21.79%
Net margin 15.43% 15.28% 12.94%
Free cash flow margin (10.83%) (52.63%) (11.51%)
Return on equity 11.69% 9.92% 9.75%
Return on assets 3.00% 2.75% 2.75%
Return on invested capital 4.05% 2.83% 3.87%

Growth

Metric SO XEL Utilities Regulated Electric median
Revenue growth (TTM) 6.40% 4.72% 7.43%
EPS growth (last fiscal year) (1.99%) (0.58%) —
Revenue growth, 5-year CAGR 7.72% 4.94% 6.75%
Net income growth, 5-year CAGR 6.84% 6.50% 6.44%

Health

Metric SO XEL Utilities Regulated Electric median
Debt to equity 1.73 1.64 1.53
Current ratio 0.79 0.70 0.81
Net debt to EBITDA 5.27 5.93 5.25

Dividend

Metric SO XEL Utilities Regulated Electric median
Dividend yield 4.15% 3.79% 4.33%
Payout ratio 0.98 0.64 0.66

Size

Metric SO XEL Utilities Regulated Electric median
Market cap 95.28b 43.36b 22.90b

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