PG&E vs PPL Which Is More Lucrative?

PG&E and PPL are two major energy companies that operate in the United States. While both companies provide electricity and natural gas services to their customers, they have different business models and geographic footprints. PG&E primarily serves customers in California, while PPL operates in several states in the Northeast and Midwest. Investors interested in these stocks may want to consider factors such as regulatory environments, financial performance, and growth prospects when making investment decisions.

PG&E or PPL?

When comparing PG&E and PPL, 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 PG&E and PPL.

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. PG&E has a dividend yield of 0.2%, while PPL has a dividend yield of 3.19%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PG&E reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.11%. On the other hand, PPL reports a 5-year dividend growth of -10.16% year and a payout ratio of 89.20%.

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 PG&E P/E ratio at 15.29 and PPL's P/E ratio at 28.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PG&E P/B ratio is 1.57 while PPL's P/B ratio is 1.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PG&E has seen a 5-year revenue growth of -0.63%, while PPL's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PG&E's ROE at 10.63% and PPL's ROE at 5.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.70 for PG&E and $32.18 for PPL. Over the past year, PG&E's prices ranged from $15.94 to $21.72, with a yearly change of 36.26%. PPL's prices fluctuated between $25.35 and $35.15, with a yearly change of 38.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.