In the competitive landscape of regulated electric utilities, Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG) stand out as industry leaders with significant market footprints. Both companies serve millions of customers with electricity and natural gas, focusing on infrastructure innovation and sustainable energy solutions. This comparison explores their strategies and financial health to help you decide which utility stock might best enhance your investment portfolio. Let’s uncover which company offers the most compelling opportunity for investors today.
Table of contents
Companies Overview
I will begin the comparison between Consolidated Edison, Inc. and Pacific Gas & Electric Co. by providing an overview of these two companies and their main differences.
Consolidated Edison, Inc. Overview
Consolidated Edison, Inc. operates in the regulated electric industry, delivering electric, gas, and steam services primarily in New York City and surrounding areas. The company serves approximately 3.5M electric customers, 1.1M gas customers, and maintains extensive transmission and distribution infrastructure. Founded in 1823, it also invests in renewable energy projects and energy infrastructure, catering to industrial, commercial, residential, and government clients.
Pacific Gas & Electric Co. Overview
Pacific Gas & Electric Co. generates, transmits, and distributes electricity and natural gas throughout northern and central California. It utilizes diverse energy sources including nuclear, hydroelectric, fossil fuels, and solar. The company serves various customer segments—residential, commercial, industrial, and agricultural—and develops integrated smart grid technologies. Incorporated in 1905, PCG operates as a subsidiary of PG&E Corporation from its Oakland headquarters.
Key similarities and differences
Both companies operate within the regulated electric sector, serving large regional customer bases and providing electricity and gas services. They share a focus on energy infrastructure and utility delivery, targeting residential and commercial markets. However, Consolidated Edison emphasizes steam service and renewable energy investments in New York, while Pacific Gas & Electric incorporates a broader energy mix including nuclear and hydroelectric power and develops smart grid technology in California. Their workforce sizes also differ significantly, with PCG employing nearly double the staff of Consolidated Edison.
Income Statement Comparison
The table below compares the key income statement metrics for Consolidated Edison, Inc. and Pacific Gas & Electric Co. for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | Consolidated Edison, Inc. (ED) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Market Cap | 35.8B | 34.8B |
| Revenue | 15.3B | 24.4B |
| EBITDA | 5.5B | 9.9B |
| EBIT | 3.3B | 5.4B |
| Net Income | 1.8B | 2.5B |
| EPS | 5.26 | 1.16 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Consolidated Edison, Inc.
Consolidated Edison’s revenue trended upward from $12.2B in 2020 to $15.3B in 2024, with net income increasing 65% over the period. Margins showed strength, with a gross margin near 64% and net margin around 12%, both favorable. However, in 2024, net income and EBIT declined sharply, signaling margin compression despite revenue growth.
Pacific Gas & Electric Co.
Pacific Gas & Electric’s revenue grew from $18.5B in 2020 to $24.4B in 2024, with net income surging nearly 3-fold. Gross margin improved markedly to 37.5%, and EBIT margin remained steady near 22%. The latest year showed strong EBIT and net margin expansion, reflecting operational improvements and robust profitability growth.
Which one has the stronger fundamentals?
Both companies exhibit favorable income statement trends with growing revenues and net incomes. Consolidated Edison shows more margin stability but recent earnings weakness. Pacific Gas & Electric demonstrates stronger growth rates and margin improvement, offset by higher interest expenses. Overall, Pacific Gas & Electric’s fundamentals appear more dynamic, while Consolidated Edison offers steadier margin profiles.
Financial Ratios Comparison
The table below presents key financial ratios for Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG) based on their most recent fiscal year data, helping to highlight their financial profiles clearly.
| Ratios | Consolidated Edison, Inc. (ED) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| ROE | 8.29% | 8.33% |
| ROIC | 3.48% | 3.98% |
| P/E | 16.96 | 17.20 |
| P/B | 1.41 | 1.43 |
| Current Ratio | 1.04 | 1.05 |
| Quick Ratio | 0.96 | 1.00 |
| D/E (Debt-to-Equity) | 1.27 | 1.94 |
| Debt-to-Assets | 39.4% | 43.7% |
| Interest Coverage | 2.30 | 1.46 |
| Asset Turnover | 0.22 | 0.18 |
| Fixed Asset Turnover | 0.29 | 0.28 |
| Payout Ratio | 60.4% | 3.42% |
| Dividend Yield | 3.56% | 0.20% |
Interpretation of the Ratios
Consolidated Edison, Inc.
Consolidated Edison shows a mixed ratio profile with favorable net margin (11.93%) and dividend yield (3.56%), but weak return on equity (8.29%) and return on invested capital (3.48%). Its debt-to-equity ratio is somewhat elevated (1.27), raising concerns about leverage. The company pays a solid dividend supported by a consistent payout, yet free cash flow coverage is negative, suggesting caution on sustainability.
Pacific Gas & Electric Co.
Pacific Gas & Electric displays similar strengths in net margin (10.29%) and price-to-book (1.43), but weaker interest coverage (1.76) and return metrics, notably ROE at 8.33%. The firm’s dividend yield is low (0.2%), reflecting modest shareholder returns. Debt levels are higher with a debt-to-equity ratio of 1.94, and free cash flow yields remain negative, indicating potential financial strain.
Which one has the best ratios?
Both companies have a slightly unfavorable overall ratio profile, with an equal share of favorable metrics (28.57%). Consolidated Edison benefits from a higher dividend yield and better interest coverage, while Pacific Gas & Electric struggles more with leverage and cash flow. Neither stands out decisively as superior in ratio strength based on the 2024 data.
Strategic Positioning
This section compares the strategic positioning of Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG), focusing on market position, key segments, and exposure to technological disruption:
Consolidated Edison, Inc. (ED)
- Operates mainly in regulated electric, gas, and steam delivery in New York City and nearby areas, facing moderate competitive pressure.
- Key segments include electricity, oil and gas purchased, steam, and non-utility products and services driving revenues.
- Limited explicit exposure to technological disruption mentioned, with investments in renewable and energy infrastructure projects.
Pacific Gas & Electric Co. (PCG)
- Operates regulated electric and natural gas services in northern and central California, with significant market scale pressure.
- Key revenue drivers are electricity generation and regulated natural gas distribution across multiple energy sources.
- Develops an integrated personal microgrid backup power device, indicating active engagement with technological innovation.
Consolidated Edison, Inc. vs Pacific Gas & Electric Co. Positioning
ED’s approach is more diversified across electricity, gas, steam, and non-utility services, while PCG concentrates on electricity and natural gas generation with advanced technology development. ED benefits from broad segment exposure; PCG focuses on innovation and scale.
Which has the best competitive advantage?
Both companies are shedding value with ROIC below WACC. PCG shows a growing ROIC trend, slightly unfavorable moat, while ED has declining ROIC and a very unfavorable moat, indicating PCG holds a relatively stronger competitive advantage.
Stock Comparison
The stock price chart highlights significant movements over the past 12 months, with Consolidated Edison, Inc. showing a bullish trend despite recent deceleration, while Pacific Gas & Electric Co. experienced a bearish trend with ongoing downward momentum.
Trend Analysis
Consolidated Edison, Inc. (ED) recorded a 13.62% price increase over the past year, indicating a bullish trend with deceleration. The price ranged between 87.01 and 112.1, with volatility at a 6.0 standard deviation.
Pacific Gas & Electric Co. (PCG) showed a 3.53% price decline during the same period, reflecting a bearish trend with deceleration. The stock traded between 13.42 and 21.63, with lower volatility at 1.93 standard deviation.
Comparing both stocks, ED delivered the highest market performance over the last year, outperforming PCG’s bearish trend and price decline.
Target Prices
The consensus target prices for Consolidated Edison, Inc. and Pacific Gas & Electric Co. suggest a moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Consolidated Edison, Inc. | 106 | 86 | 99.86 |
| Pacific Gas & Electric Co. | 25 | 18 | 21.5 |
Analysts expect Consolidated Edison, Inc.’s stock to trade near its current price of $99.21, while Pacific Gas & Electric Co.’s consensus target of $21.5 indicates a potential upside from its current price of $15.85.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG):
Rating Comparison
ED Rating
- Rating: B- with a very favorable status.
- Discounted Cash Flow Score: 1, considered very unfavorable.
- ROE Score: 3, reflecting moderate performance.
- ROA Score: 3, indicating moderate asset efficiency.
- Debt To Equity Score: 2, showing moderate financial risk.
- Overall Score: 2, rated as moderate overall.
PCG Rating
- Rating: B- with a very favorable status.
- Discounted Cash Flow Score: 1, considered very unfavorable.
- ROE Score: 3, reflecting moderate performance.
- ROA Score: 3, indicating moderate asset efficiency.
- Debt To Equity Score: 1, indicating very unfavorable financial risk.
- Overall Score: 3, rated as moderate overall.
Which one is the best rated?
Based strictly on the data, PCG has a higher overall score (3) than ED (2), despite both sharing the same B- rating and very unfavorable discounted cash flow scores. PCG’s debt to equity score is lower, indicating higher financial risk.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score of Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG):
ED Scores
- Altman Z-Score: 1.19, in distress zone indicating high risk
- Piotroski Score: 7, strong financial health
PCG Scores
- Altman Z-Score: 0.48, in distress zone indicating very high risk
- Piotroski Score: 5, average financial health
Which company has the best scores?
Based strictly on the provided scores, ED has a better Piotroski Score (7 vs. 5), indicating stronger financial health. Both are in the Altman Z-Score distress zone, but PCG’s score is lower, implying higher bankruptcy risk.
Grades Comparison
Here is a comparison of the recent grades and ratings for Consolidated Edison, Inc. and Pacific Gas & Electric Co.:
Consolidated Edison, Inc. Grades
The following table displays recent grades assigned by reputable financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2026-01-07 |
| UBS | Maintain | Neutral | 2025-12-17 |
| Keybanc | Maintain | Underweight | 2025-12-12 |
| JP Morgan | Maintain | Underweight | 2025-12-12 |
| Barclays | Maintain | Underweight | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-10-22 |
| Morgan Stanley | Maintain | Underweight | 2025-10-22 |
| Barclays | Maintain | Underweight | 2025-10-21 |
| Keybanc | Maintain | Underweight | 2025-10-15 |
| Morgan Stanley | Maintain | Underweight | 2025-09-25 |
Grades for Consolidated Edison show a predominant underweight stance with UBS maintaining a neutral rating recently. The consensus rating is Hold, reflecting caution among analysts.
Pacific Gas & Electric Co. Grades
Recent grades given by credible grading firms are summarized below:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Jefferies | Maintain | Buy | 2025-10-22 |
| BMO Capital | Maintain | Outperform | 2025-10-14 |
| Jefferies | Maintain | Buy | 2025-10-03 |
| Barclays | Maintain | Overweight | 2025-10-01 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-09-18 |
| UBS | Maintain | Neutral | 2025-09-18 |
| Barclays | Maintain | Overweight | 2025-07-22 |
The grades for Pacific Gas & Electric Co. reveal a generally favorable outlook, with multiple buy and overweight ratings. The consensus rating is Buy, indicating positive analyst sentiment.
Which company has the best grades?
Pacific Gas & Electric Co. holds better grades overall, dominated by buy and overweight recommendations, compared to Consolidated Edison’s mainly underweight and neutral ratings. This difference suggests Pacific Gas & Electric Co. may be viewed as having stronger growth or value prospects by analysts.
Strengths and Weaknesses
Below is a comparison table highlighting key strengths and weaknesses of Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG) based on their recent financial and operational data.
| Criterion | Consolidated Edison, Inc. (ED) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Diversification | Moderate: Revenue split mainly between Electricity (10.8B) and Oil & Gas Purchased (3.1B), with smaller Steam and Non-Utility segments | Moderate: Revenue mainly from Electricity (18.6B) and Natural Gas Regulated (6.6B) |
| Profitability | Mixed: Net margin favorable at 11.93%, but ROIC (3.48%) below WACC (4.72%), indicating value destruction | Mixed: Net margin favorable at 10.29%, ROIC (3.98%) also below WACC (4.68%), but improving trend |
| Innovation | Limited data; traditional utility focus with no clear innovation leadership | Similar utility profile, with improving ROIC trend suggesting operational improvements |
| Global presence | Primarily regional U.S. utility with limited global footprint | Also primarily regional U.S. utility, no significant global presence |
| Market Share | Stable in its service area, but facing profitability challenges | Stable with growing profitability trend despite current value shedding |
Key takeaways: Both companies operate in regulated utility markets with moderate diversification and strong regional market positions. Neither currently generates returns above their cost of capital, signaling value destruction; however, PCG shows a positive ROIC trend, which may indicate improving operational efficiency. Investors should weigh these factors carefully, considering their risk tolerance and investment horizon.
Risk Analysis
Below is a comparison of key risks for Consolidated Edison, Inc. (ED) and Pacific Gas & Electric Co. (PCG) as of 2026:
| Metric | Consolidated Edison, Inc. (ED) | Pacific Gas & Electric Co. (PCG) |
|---|---|---|
| Market Risk | Low beta (0.38), stable utility sector | Low beta (0.38), but higher volatility in CA market |
| Debt Level | Moderate debt-to-equity (1.27), interest coverage 2.8x | Higher debt-to-equity (1.94), weaker interest coverage 1.76x |
| Regulatory Risk | Moderate, NY regulated utility with stable policies | High, CA regulatory scrutiny and wildfire liabilities |
| Operational Risk | Aging infrastructure, moderate asset turnover | Aging infrastructure, lower asset turnover, wildfire risks |
| Environmental Risk | Moderate, focus on renewables and gas distribution | High, exposure to wildfire risks and environmental compliance |
| Geopolitical Risk | Low, US East Coast focus | Medium, CA political and environmental policies impact |
Synthesis: Both companies face significant operational and regulatory risks due to aging infrastructure and utility regulation. PCG’s risks are more pronounced, particularly environmental and regulatory, given wildfire liabilities and California’s strict policies. ED shows moderate financial leverage with better interest coverage, suggesting slightly lower financial risk. Investors should carefully weigh PCG’s higher debt and environmental exposure against ED’s relatively stable profile.
Which Stock to Choose?
Consolidated Edison, Inc. (ED) shows a favorable income statement with a 57.14% positive evaluation, despite some recent declines in earnings growth. Its financial ratios are slightly unfavorable overall, with 35.71% unfavorable metrics including a higher debt-to-equity ratio and weak asset turnover. The company carries moderate debt and a strong B- rating, yet its economic moat is very unfavorable due to declining ROIC below WACC.
Pacific Gas & Electric Co. (PCG) presents a strongly favorable income trend, with 78.57% favorable income metrics and significant net income growth. Its financial ratios are also slightly unfavorable with 50% unfavorable scores, reflecting higher leverage and weaker interest coverage. PCG’s debt level is higher than ED’s, and it holds a similar B- rating, while its economic moat is slightly unfavorable but with improving ROIC.
Investors seeking growth might find PCG’s robust income growth and improving profitability appealing, while risk-averse or quality-focused investors could interpret ED’s more stable income statement and moderate rating as preferable. Both stocks exhibit some financial challenges, suggesting cautious consideration aligned with individual risk tolerance and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Consolidated Edison, Inc. and Pacific Gas & Electric Co. to enhance your investment decisions:
