Duke Energy vs Consolidated Edison Which Is a Better Investment?

Duke Energy and Consolidated Edison are two of the largest energy companies in the United States, each operating in different regions of the country. Duke Energy serves customers in the Southeast and Midwest, while Consolidated Edison caters to customers in the Northeast. Both companies have stable revenue streams and offer attractive dividend yields to investors. However, Duke Energy has a larger market capitalization and a more diversified portfolio of energy assets, while Consolidated Edison has a strong focus on regulated utility businesses. Investing in either stock requires careful consideration of their respective market positions and growth prospects.

Duke Energy or Consolidated Edison?

When comparing Duke Energy and Consolidated Edison, 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 Duke Energy and Consolidated Edison.

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. Duke Energy has a dividend yield of 3.66%, while Consolidated Edison has a dividend yield of 3.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Duke Energy reports a 5-year dividend growth of 2.24% year and a payout ratio of 92.18%. On the other hand, Consolidated Edison reports a 5-year dividend growth of 2.53% year and a payout ratio of 60.77%.

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 Duke Energy P/E ratio at 20.08 and Consolidated Edison's P/E ratio at 19.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Duke Energy P/B ratio is 1.77 while Consolidated Edison's P/B ratio is 1.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Duke Energy has seen a 5-year revenue growth of 0.09%, while Consolidated Edison's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Duke Energy's ROE at 8.76% and Consolidated Edison's ROE at 8.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.39 for Duke Energy and $97.59 for Consolidated Edison. Over the past year, Duke Energy's prices ranged from $86.61 to $121.25, with a yearly change of 40.00%. Consolidated Edison's prices fluctuated between $85.85 and $107.75, with a yearly change of 25.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.