Evergy (NYSE:EVRG) and CMS Energy (NYSE:CMS) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
This table compares Evergy and CMS Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
84.5% of Evergy shares are held by institutional investors. Comparatively, 92.5% of CMS Energy shares are held by institutional investors. 0.4% of Evergy shares are held by insiders. Comparatively, 0.5% of CMS Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Evergy has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, CMS Energy has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Evergy and CMS Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evergy presently has a consensus price target of $66.00, suggesting a potential upside of 3.21%. CMS Energy has a consensus price target of $60.77, suggesting a potential downside of 4.65%. Given Evergy’s higher probable upside, equities analysts clearly believe Evergy is more favorable than CMS Energy.
Evergy pays an annual dividend of $1.90 per share and has a dividend yield of 3.0%. CMS Energy pays an annual dividend of $1.53 per share and has a dividend yield of 2.4%. Evergy pays out 71.2% of its earnings in the form of a dividend. CMS Energy pays out 65.7% 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.
Earnings & Valuation
This table compares Evergy and CMS Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evergy||$4.28 billion||3.52||$535.80 million||$2.67||23.95|
|CMS Energy||$6.87 billion||2.63||$657.00 million||$2.33||27.35|
CMS Energy has higher revenue and earnings than Evergy. Evergy is trading at a lower price-to-earnings ratio than CMS Energy, indicating that it is currently the more affordable of the two stocks.
CMS Energy beats Evergy on 9 of the 16 factors compared between the two stocks.
Westar Energy, Inc. engages in the generation, transmission and distribution of electricity in Kansas. It provides electricity to residential, commercial, and industrial customers in the cities of Topeka, Lawrence, Manhattan, Salina, and Hutchinson. The company was founded in 1924 and is headquartered in Topeka, KS.
About CMS Energy
CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates in three segments: Electric Utility, Gas Utility, and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. The segment generates electricity through coal, gas, renewable energy, oil, and nuclear sources. Its transmission and distribution system includes 214 miles of transmission overhead lines; 195 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,435 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 56,152 miles of electric distribution overhead lines; 10,817 miles of underground distribution lines; substations; and a battery facility. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas. Its gas transmission, storage, and distribution system consists of 1,666 miles of transmission lines; 15 gas storage fields; 28,404 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It owns interests in independent power plants totaling 1,335 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 Michigan's Lower Peninsula. CMS Energy Corporation was founded in 1987 and is headquartered in Jackson, Michigan.
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