Duke Energy Corporation (NYSE:DUK) and CMS Energy Corporation (NYSE:CMS) compete with each other in the Electric Utilities sector. We will analyze and contrast their analyst recommendations, profitability, risk, dividends, earnings and valuation, institutional ownership.
Valuation & Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Duke Energy Corporation||24.12B||2.72||2.64B||3.77||23.86|
|CMS Energy Corporation||6.87B||2.25||657.00M||2.22||24.41|
Table 1 showcases the top-line revenue, earnings per share (EPS) and valuation of Duke Energy Corporation and CMS Energy Corporation. CMS Energy Corporation appears to has lower revenue and earnings than Duke Energy Corporation. The business that is more affordable between the two has a lower P/E ratio. Duke Energy Corporation’s presently lower P/E ratio makes it the more affordable of the two businesses.
Table 2 hightlights the return on equity, net margins and return on assets of the two companies.
|Net Margins||Return on Equity||Return on Assets|
|Duke Energy Corporation||10.95%||6.6%||2%|
|CMS Energy Corporation||9.56%||14%||2.8%|
Risk and Volatility
Duke Energy Corporation’s volatility measures that it’s 95.00% less volatile than S&P 500 due to its 0.05 beta. Competitively, CMS Energy Corporation’s beta is 0.18 which is 82.00% less volatile than S&P 500.
Duke Energy Corporation’s Current Ratio is 0.7 while its Quick Ratio is 0.5. On the competitive side is, CMS Energy Corporation which has a 0.9 Current Ratio and a 0.7 Quick Ratio. CMS Energy Corporation is better positioned to pay off short and long-term obligations compared to Duke Energy Corporation.
Duke Energy Corporation pays out an annual dividend of $3.63 per share while its dividend yield is 4.06%. Meanwhile, CMS Energy Corporation’s annual dividend is $1.43 per share and it also boasts of a 2.63% dividend yield.
The Recommendations and Ratings for Duke Energy Corporation and CMS Energy Corporation are featured in the next table.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|Duke Energy Corporation||0||5||0||2.00|
|CMS Energy Corporation||0||8||2||2.20|
Duke Energy Corporation has a consensus target price of $88.2, and a -2.22% downside potential. On the other hand, CMS Energy Corporation’s potential downside is -2.20% and its consensus target price is $53.44. Based on the results delivered earlier, CMS Energy Corporation is looking more favorable than Duke Energy Corporation, analysts opinion.
Insider & Institutional Ownership
Roughly 64% of Duke Energy Corporation shares are held by institutional investors while 95% of CMS Energy Corporation are owned by institutional investors. About 0.1% of Duke Energy Corporation’s share are held by insiders. Comparatively, CMS Energy Corporation has 0.5% of it’s share held by insiders.
In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|Duke Energy Corporation||0.45%||2.39%||2.6%||11.33%||18.95%||4.15%|
|CMS Energy Corporation||0.61%||3.86%||5.7%||9.97%||27.83%||9.06%|
For the past year Duke Energy Corporation was less bullish than CMS Energy Corporation.
Duke Energy Corporation beats on 10 of the 17 factors CMS Energy Corporation.
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; uses coal, hydroelectric, natural gas, oil, renewable generation, and nuclear fuel to generate electricity; and engages in the wholesale of electricity to municipalities, electric cooperative utilities, and other load-serving entities. This segment serves approximately 7.5 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 95,000 square miles; and owns approximately 49,300 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in various pipeline transmission and natural gas storage facilities. It has approximately 1.5 million customers, including 1 million customers located in North Carolina, South Carolina, and Tennessee, and as well as 529,000 customers located in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, builds, develops, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. This segment has 21 wind farms and 63 commercial solar farms with a capacity of 2,900 MW across 14 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. Duke Energy Corporation was incorporated in 2005 and is headquartered in Charlotte, North Carolina.
CMS Energy Corporation operates as an energy company primarily in Michigan. It operates through three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment engages in the generation, purchase, transmission, distribution, and sale of electricity. It generates electricity through fossil-fuel-fired plants, as well as renewable energy and nuclear sources. This segmentÂ’s transmission and distribution system includes 214 miles of transmission overhead lines; 188 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,430 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 56,067 miles of electric distribution overhead lines; 10,532 miles of underground distribution lines; and substations. The Gas Utility segment is involved in the purchase, transmission, storage, distribution, and sale of natural gas. This segmentÂ’s gas transmission, storage, and distribution system comprises 1,670 miles of transmission lines; 15 gas storage fields; 27,920 miles of distribution mains; and 8 compressor stations. The Enterprises segment engages in the independent power production and marketing activities; and development of renewable generation. As of December 31, 2016, this segment had ownership interests in independent power plants totaling 1,177 megawatts. The company also operates an industrial bank providing unsecured consumer installment loans for financing home improvements. It serves 1.8 million electric customers and 1.8 million gas customers, including residential, commercial, and diversified industrial customers in MichiganÂ’s Lower Peninsula. CMS Energy Corporation was founded in 1987 and is headquartered in Jackson, Michigan.