Critical Comparison: CMS Energy Corporation (CMS) & Its Competitors
CMS Energy Corporation (NYSE: CMS) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it compare to its competitors? We will compare CMS Energy Corporation to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, dividends and risk.
Earnings and Valuation
This table compares CMS Energy Corporation and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CMS Energy Corporation||$6.51 billion||$2.06 billion||23.27|
|CMS Energy Corporation Competitors||$7.70 billion||$2.04 billion||20.47|
CMS Energy Corporation’s competitors have higher revenue, but lower earnings than CMS Energy Corporation. CMS Energy Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
CMS Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 2.9%. CMS Energy Corporation pays out 66.8% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.1% and pay out 71.1% of their earnings in the form of a dividend. CMS Energy Corporation has increased its dividend for 5 consecutive years.
Insider and Institutional Ownership
87.4% of CMS Energy Corporation shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Multiline Utilities” companies are owned by institutional investors. 0.7% of CMS Energy Corporation shares are owned by company insiders. Comparatively, 3.1% of shares of all “Multiline Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares CMS Energy Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CMS Energy Corporation||8.52%||12.98%||2.64%|
|CMS Energy Corporation Competitors||8.42%||8.94%||2.33%|
This is a breakdown of current ratings and target prices for CMS Energy Corporation and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CMS Energy Corporation||0||5||5||0||2.50|
|CMS Energy Corporation Competitors||317||958||819||6||2.24|
CMS Energy Corporation currently has a consensus price target of $48.56, suggesting a potential upside of 4.87%. As a group, “Multiline Utilities” companies have a potential upside of 10.77%. Given CMS Energy Corporation’s competitors higher possible upside, analysts clearly believe CMS Energy Corporation has less favorable growth aspects than its competitors.
Risk and Volatility
CMS Energy Corporation has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, CMS Energy Corporation’s competitors have a beta of 0.60, suggesting that their average share price is 40% less volatile than the S&P 500.
CMS Energy Corporation beats its competitors on 9 of the 15 factors compared.
About CMS Energy Corporation
CMS Energy Corporation is an energy company operating primarily in Michigan. The Company operates through three segments: electric utility, which consists of regulated activities associated with the generation, transmission and distribution of electricity in Michigan; gas utility, which consists of regulated activities associated with the transportation, storage and distribution of natural gas in Michigan, and enterprises, which consists of various subsidiaries engaging primarily in domestic independent power production. The Company is the parent holding company of various subsidiaries, including Consumers Energy Company (Consumers), an electric and gas utility company, and CMS Enterprises Company (CMS Enterprises), a domestic independent power producer. Consumers serves individuals and businesses operating in the alternative energy, automotive, chemical, metal, and food products industries, as well as a group of other industries.
Receive News & Stock Ratings for CMS Energy Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CMS Energy Corporation and related stocks with our FREE daily email newsletter.