CMS Energy vs Consumers Energy Which Performs Better?

CMS Energy and Consumers Energy are two separate entities within the energy sector. CMS Energy is a publicly traded holding company that operates primarily in electric and natural gas utilities, while Consumers Energy is a subsidiary of CMS Energy and serves as the primary utility provider in Michigan. Both stocks are known for their stability and consistent dividend payments, making them attractive options for investors seeking steady returns in the energy industry. However, there are differences in their financial performance and growth prospects that investors should consider before making investment decisions.

CMS Energy or Consumers Energy?

When comparing CMS Energy and Consumers Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CMS Energy and Consumers Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CMS Energy has a dividend yield of 3.06%, while Consumers Energy has a dividend yield of 3.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMS Energy reports a 5-year dividend growth of 6.40% year and a payout ratio of 58.64%. On the other hand, Consumers Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 58.64%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CMS Energy P/E ratio at 19.37 and Consumers Energy's P/E ratio at 19.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMS Energy P/B ratio is 2.50 while Consumers Energy's P/B ratio is 2.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMS Energy has seen a 5-year revenue growth of 0.05%, while Consumers Energy's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMS Energy's ROE at 13.25% and Consumers Energy's ROE at 13.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $66.83 for CMS Energy and $79.45 for Consumers Energy. Over the past year, CMS Energy's prices ranged from $55.10 to $72.40, with a yearly change of 31.40%. Consumers Energy's prices fluctuated between $77.00 and $94.87, with a yearly change of 23.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.