Comparing CMS Energy Corporation (CMS) & Its Rivals

CMS Energy Corporation (NYSE: CMS) is one of 22 publicly-traded companies in the “Multiline Utilities” industry, but how does it contrast to its peers? We will compare CMS Energy Corporation to related businesses based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares CMS Energy Corporation and its peers’ 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%

Dividends

CMS Energy Corporation pays an annual dividend of $1.33 per share and has a dividend yield of 2.8%. 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 3.0% and pay out 71.2% of their earnings in the form of a dividend. CMS Energy Corporation has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares CMS Energy Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CMS Energy Corporation $6.51 billion $2.06 billion 24.09
CMS Energy Corporation Competitors $7.70 billion $2.04 billion 20.90

CMS Energy Corporation’s peers have higher revenue, but lower earnings than CMS Energy Corporation. CMS Energy Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

CMS Energy Corporation has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, CMS Energy Corporation’s peers have a beta of 0.60, meaning that their average stock price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

87.3% of CMS Energy Corporation shares are owned by institutional investors. Comparatively, 66.0% 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 will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for CMS Energy Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CMS Energy Corporation 0 5 6 0 2.55
CMS Energy Corporation Competitors 328 972 834 6 2.24

CMS Energy Corporation currently has a consensus target price of $48.90, suggesting a potential upside of 2.00%. As a group, “Multiline Utilities” companies have a potential upside of 9.72%. Given CMS Energy Corporation’s peers higher probable upside, analysts plainly believe CMS Energy Corporation has less favorable growth aspects than its peers.

Summary

CMS Energy Corporation beats its peers on 9 of the 15 factors compared.

CMS Energy Corporation Company Profile

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.

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