Eversource Energy (NYSE:ES) and Pacific Gas & Electric (NYSE:PCG) Head to Head Survey

Eversource Energy (NYSE:ES) and Pacific Gas & Electric (NYSE:PCG) are both large-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Insider and Institutional Ownership

80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 78.6% of Pacific Gas & Electric shares are owned by institutional investors. 0.2% of Eversource Energy shares are owned by company insiders. Comparatively, 0.1% of Pacific Gas & Electric shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Eversource Energy and Pacific Gas & Electric”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$13.55 billion	1.94	$1.69 billion	$4.57	15.32
Pacific Gas & Electric	$24.94 billion	1.63	$2.70 billion	$1.18	15.71

Pacific Gas & Electric has higher revenue and earnings than Eversource Energy. Eversource Energy is trading at a lower price-to-earnings ratio than Pacific Gas & Electric, indicating that it is currently the more affordable of the two stocks.

Dividends

Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.5%. Pacific Gas & Electric pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Eversource Energy pays out 68.9% of its earnings in the form of a dividend. Pacific Gas & Electric pays out 16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eversource Energy has increased its dividend for 2 consecutive years and Pacific Gas & Electric has increased its dividend for 1 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Eversource Energy and Pacific Gas & Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	3	5	3	1	2.17
Pacific Gas & Electric	1	6	7	0	2.43

Eversource Energy presently has a consensus target price of $71.90, suggesting a potential upside of 2.71%. Pacific Gas & Electric has a consensus target price of $21.27, suggesting a potential upside of 14.77%. Given Pacific Gas & Electric’s stronger consensus rating and higher probable upside, analysts plainly believe Pacific Gas & Electric is more favorable than Eversource Energy.

Profitability

This table compares Eversource Energy and Pacific Gas & Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	12.49%	11.18%	2.87%
Pacific Gas & Electric	10.84%	11.28%	2.48%

Volatility and Risk

Eversource Energy has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Pacific Gas & Electric has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Summary

Eversource Energy beats Pacific Gas & Electric on 10 of the 18 factors compared between the two stocks.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.

About Pacific Gas & Electric

PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.