Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG) are two prominent players in the regulated electric utility sector, serving distinct but overlapping U.S. markets. Both companies emphasize innovation through renewable energy integration and infrastructure expansion, aiming to balance traditional generation with sustainable solutions. This comparison seeks to highlight their strategic strengths and investment potential. Join me as we explore which company stands out as the more compelling choice for your portfolio.
Table of contents
Companies Overview
I will begin the comparison between Public Service Enterprise Group Incorporated and Evergy, Inc. by providing an overview of these two companies and their main differences.
Public Service Enterprise Group Incorporated Overview
Public Service Enterprise Group Incorporated (PEG) operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. Its mission involves electricity transmission, distribution of electricity and gas, investment in solar generation projects, and energy efficiency programs. PEG manages extensive infrastructure including 25,000 circuit miles of electric transmission and distribution, serving a broad customer base through its two segments, PSE&G and PSEG Power.
Evergy, Inc. Overview
Evergy, Inc. (EVRG) engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri. The company produces electricity from diverse sources including coal, hydroelectric, landfill gas, uranium, natural gas, oil, solar, and wind. Evergy maintains a large network of transmission and distribution lines and serves approximately 1.62M customers, focusing on residential, commercial, industrial, and municipal sectors in its regional markets.
Key similarities and differences
Both PEG and EVRG operate in the regulated electric utilities sector, focusing on electricity transmission and distribution with a commitment to renewable energy investments. PEG has a larger market capitalization at $39.3B compared to EVRG’s $16.8B and a more extensive service area in the Northeastern and Mid-Atlantic US. In contrast, Evergy’s customer base is concentrated in Kansas and Missouri, with a diverse energy generation mix that includes nuclear and landfill gas, whereas PEG emphasizes solar and energy efficiency programs.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Public Service Enterprise Group Incorporated and Evergy, Inc. based on their latest fiscal year data.
| Metric | Public Service Enterprise Group Incorporated (PEG) | Evergy, Inc. (EVRG) |
|---|---|---|
| Market Cap | 39.3B | 16.8B |
| Revenue | 10.3B | 5.8B |
| EBITDA | 4.0B | 2.6B |
| EBIT | 2.7B | 1.5B |
| Net Income | 1.8B | 873.5M |
| EPS | 3.56 | 3.79 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Public Service Enterprise Group Incorporated
From 2020 to 2024, Public Service Enterprise Group Incorporated (PEG) showed mixed revenue trends, with a modest overall growth of 7.15% but a decline of 8.43% in the last year. Net income decreased by 6.98% over the period, with a sharp 30.99% drop in EPS in 2024. Margins remain generally favorable, yet the recent year saw a contraction in gross profit and EBIT margins, signaling slowing profitability.
Evergy, Inc.
Evergy, Inc. (EVRG) experienced steady improvements in revenue and net income from 2020 to 2024, with overall growth rates of 18.53% and 41.27%, respectively. The company’s margins have been favorable, with a 15.0% net margin in 2024. The latest year reflected positive momentum, including a 19.56% EPS increase and improved EBIT and net margin growth, indicating strengthening operational efficiency and profitability.
Which one has the stronger fundamentals?
Based on income statement trends, Evergy demonstrates stronger fundamentals with consistent revenue and net income growth, favorable margin expansion, and positive performance in the latest fiscal year. Conversely, Public Service Enterprise Group shows weaker recent results, with declining profitability and unfavorable growth metrics, despite historically favorable margins. Evergy’s overall financial trajectory appears more robust.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG) based on their most recent fiscal year 2024 data.
| Ratios | Public Service Enterprise Group Incorporated (PEG) | Evergy, Inc. (EVRG) |
|---|---|---|
| ROE | 11.0% | 8.8% |
| ROIC | 4.4% | 4.5% |
| P/E | 23.7 | 16.2 |
| P/B | 2.61 | 1.42 |
| Current Ratio | 0.65 | 0.50 |
| Quick Ratio | 0.48 | 0.27 |
| D/E (Debt-to-Equity) | 1.42 | 1.41 |
| Debt-to-Assets | 41.9% | 43.6% |
| Interest Coverage | 2.80 | 2.57 |
| Asset Turnover | 0.19 | 0.18 |
| Fixed Asset Turnover | 0.26 | 0.23 |
| Payout Ratio | 67.5% | 68.3% |
| Dividend Yield | 2.84% | 4.21% |
Interpretation of the Ratios
Public Service Enterprise Group Incorporated
Public Service Enterprise Group shows a mixed ratio profile with favorable net margin (17.22%) and WACC (5.37%), but weak liquidity (current ratio 0.65) and high debt leverage (debt-to-equity 1.42). Returns on capital are modest, with ROE neutral at 11% and ROIC unfavorable at 4.4%. The company pays a dividend, yielding 2.84%, supported by moderate payout risk given coverage by free cash flow concerns.
Evergy, Inc.
Evergy presents favorable net margin (15%) and WACC (5.36%), but less convincing returns with ROE at 8.77% and ROIC at 4.52%, both unfavorable. Liquidity ratios are low (current ratio 0.5), with debt levels similar to its peer (debt-to-equity 1.41). The dividend yield is higher at 4.21%, reflecting a potentially more attractive shareholder return despite some coverage and leverage risks.
Which one has the best ratios?
Both companies exhibit slightly unfavorable overall ratio profiles, marked by weak liquidity and leverage concerns. Public Service Enterprise Group has a somewhat stronger ROE and lower debt-to-assets, but Evergy offers a higher dividend yield and better price-to-book ratio. The choice depends on which factors investors prioritize, as neither company demonstrates an unequivocally superior ratio set.
Strategic Positioning
This section compares the strategic positioning of Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG), focusing on market position, key segments, and exposure to technological disruption:
Public Service Enterprise Group Incorporated
- Large market cap of 39B with moderate beta, operating mainly in the Northeastern and Mid-Atlantic US under regulated electric industry.
- Revenue diversified across transmission, gas distribution, natural gas, and electric services, driven by PSE&G and power segments.
- Limited explicit information on disruption exposure; solar and energy efficiency investments mentioned for PEG, renewables included for EVRG.
Evergy, Inc.
- Smaller market cap of 16.7B, with moderate beta, serving Kansas and Missouri in regulated electric utilities.
- Revenue mainly from electric utility segment with diverse generation sources including coal, hydro, natural gas, and renewables.
Public Service Enterprise Group Incorporated vs Evergy, Inc. Positioning
PEG has a more diversified revenue base across several segments including gas and power, while EVRG focuses heavily on electric utility operations with varied generation sources. PEG’s broader geographic presence contrasts with EVRG’s regional concentration, reflecting different strategic approaches with respective scale advantages and narrower focus risks.
Which has the best competitive advantage?
Both PEG and EVRG show slightly unfavorable MOAT evaluations, shedding value despite growing ROIC trends, indicating limited competitive advantage and challenges in consistently generating excess returns over capital costs.
Stock Comparison
The stock price movements of Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG) over the past year reveal significant bullish trends with recent deceleration and short-term declines in both securities.
Trend Analysis
Public Service Enterprise Group Incorporated (PEG) recorded a 31.59% price increase over the past 12 months, indicating a bullish trend with decelerating momentum. The price ranged from a low of 59.79 to a high of 94.3, with recent weeks showing a moderate decline of -5.33%.
Evergy, Inc. (EVRG) experienced a stronger 45.55% price rise over the same period, also bullish but decelerating. Its price fluctuated between 49.12 and 77.98, while the recent trend showed a sharper decline of -6.59%.
Comparing both stocks, EVRG delivered the highest market performance with a 45.55% increase over 12 months, outperforming PEG’s 31.59% gain according to the provided data.
Target Prices
Analysts present a moderately optimistic consensus for both Public Service Enterprise Group Incorporated and Evergy, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Public Service Enterprise Group Incorporated | 98 | 83 | 89 |
| Evergy, Inc. | 93 | 76 | 82.67 |
The target consensus for Public Service Enterprise Group Incorporated stands at $89, above its current price of $78.68, indicating potential upside. Evergy, Inc.’s consensus target of $82.67 also exceeds its present price of $72.82, reflecting positive analyst expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG):
Rating Comparison
PEG Rating
- Rating: B- with a very favorable status indicating solid overall financial standing.
- Discounted Cash Flow Score: 1, considered very unfavorable, suggesting concerns on valuation.
- Return on Equity Score: 4, favorable, reflecting efficient profit generation from equity.
- Return on Assets Score: 4, favorable, indicating effective asset utilization to generate earnings.
- Debt To Equity Score: 2, moderate, showing balanced financial risk from debt levels.
- Overall Score: 3, moderate, summarizing average financial health and performance.
EVRG Rating
- Rating: B- with a very favorable status indicating solid overall financial standing.
- Discounted Cash Flow Score: 1, considered very unfavorable, suggesting concerns on valuation.
- Return on Equity Score: 3, moderate, reflecting average efficiency in profit generation.
- Return on Assets Score: 3, moderate, indicating average effectiveness in asset utilization.
- Debt To Equity Score: 2, moderate, showing balanced financial risk from debt levels.
- Overall Score: 2, moderate, summarizing slightly lower financial health and performance.
Which one is the best rated?
Based strictly on the provided data, PEG is better rated than EVRG, with higher scores in return on equity, return on assets, and overall score, while both share the same rating and debt to equity score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
PEG Scores
- Altman Z-Score: 1.32, placing PEG in distress zone with high bankruptcy risk.
- Piotroski Score: 7, indicating strong financial health and investment potential.
EVRG Scores
- Altman Z-Score: 0.82, placing EVRG in distress zone with high bankruptcy risk.
- Piotroski Score: 5, indicating average financial health and moderate investment potential.
Which company has the best scores?
PEG has a higher Piotroski Score of 7 compared to EVRG’s 5, suggesting stronger financial health. Both companies fall in the distress zone by Altman Z-Score, but PEG’s score is slightly higher.
Grades Comparison
Here is a detailed comparison of recent grades assigned to Public Service Enterprise Group Incorporated and Evergy, Inc.:
Public Service Enterprise Group Incorporated Grades
The table below shows recent grades from several reputable grading companies for PEG:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Ladenburg Thalmann | Upgrade | Buy | 2026-01-07 |
| UBS | Maintain | Buy | 2025-12-17 |
| JP Morgan | Maintain | Overweight | 2025-12-12 |
| Jefferies | Upgrade | Buy | 2025-11-06 |
| TD Cowen | Maintain | Buy | 2025-11-05 |
| BMO Capital | Maintain | Market Perform | 2025-11-04 |
| Barclays | Maintain | Equal Weight | 2025-10-21 |
| BMO Capital | Maintain | Market Perform | 2025-10-20 |
| Morgan Stanley | Maintain | Overweight | 2025-09-25 |
| BMO Capital | Maintain | Market Perform | 2025-08-06 |
Overall, PEG’s grades show a solid bias towards Buy and Overweight ratings, with some Market Perform and Equal Weight ratings maintained.
Evergy, Inc. Grades
The following table presents recent grades for EVRG from recognized grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Downgrade | Neutral | 2025-12-18 |
| UBS | Maintain | Buy | 2025-12-17 |
| Citigroup | Maintain | Buy | 2025-11-10 |
| Jefferies | Maintain | Buy | 2025-10-09 |
| Mizuho | Maintain | Outperform | 2025-08-08 |
| Mizuho | Maintain | Outperform | 2025-07-18 |
| Barclays | Maintain | Overweight | 2025-05-30 |
| Citigroup | Maintain | Buy | 2025-05-16 |
| UBS | Upgrade | Buy | 2025-04-28 |
| Barclays | Maintain | Overweight | 2025-04-22 |
EVRG’s grades predominantly favor Buy and Outperform ratings, though a recent downgrade to Neutral from Mizuho indicates some caution.
Which company has the best grades?
Both companies hold a consensus Buy rating. PEG has a higher number of Buy ratings (19 versus 8 for EVRG) and fewer Hold or Sell opinions, indicating broader analyst confidence. Investors may interpret PEG’s stronger buy consensus as a signal of more uniform positive sentiment, while EVRG’s mix with some downgrades suggests more varied opinions.
Strengths and Weaknesses
Below is a comparison table summarizing key strengths and weaknesses of Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG) based on their most recent financial and operational data.
| Criterion | Public Service Enterprise Group (PEG) | Evergy, Inc. (EVRG) |
|---|---|---|
| Diversification | High diversification with multiple revenue streams including gas distribution ($2.06B), electric utility ($3.98B), transmission ($1.75B), and other contracts ($1.05B) | Concentrated revenue mainly from Electric Utility Segment ($2.7B in 2017), less diversified |
| Profitability | Net margin 17.22% (favorable), ROE 11% (neutral), ROIC 4.4% (unfavorable) – value slightly destroyed but improving | Net margin 15% (favorable), ROE 8.77% (unfavorable), ROIC 4.52% (unfavorable) – also value destroyed but improving |
| Innovation | Moderate; steady ROIC growth indicates operational improvements but no strong innovation signals | Moderate; similar ROIC growth trend but lacks clear innovation differentiation |
| Global presence | Primarily U.S.-focused utility with no significant international exposure | Also primarily U.S.-focused, with no global operations reported |
| Market Share | Large presence in New Jersey and surrounding regions with established infrastructure | Strong regional market share in Midwest U.S., but smaller scale compared to PEG |
Key takeaways: PEG offers better revenue diversification and slightly stronger profitability metrics, despite both companies currently shedding value as ROIC remains below WACC. Both are improving ROIC trends, signaling potential profitability gains ahead. Investors should weigh diversification and regional market strength versus modest innovation and global reach.
Risk Analysis
Below is a comparison of key risk factors for Public Service Enterprise Group Incorporated (PEG) and Evergy, Inc. (EVRG) based on the most recent 2024 data:
| Metric | Public Service Enterprise Group (PEG) | Evergy, Inc. (EVRG) |
|---|---|---|
| Market Risk | Beta 0.61 (low volatility) | Beta 0.65 (low volatility) |
| Debt level | Debt/Equity 1.42 (unfavorable) | Debt/Equity 1.41 (unfavorable) |
| Regulatory Risk | Moderate, US regulated utility sector | Moderate, US regulated utility sector |
| Operational Risk | Complex infrastructure, 13K+ employees | Large network, 4.7K employees |
| Environmental Risk | Exposure to fossil fuels and renewables | Coal dependency, transition risks |
| Geopolitical Risk | Low, primarily US regional exposure | Low, primarily US regional exposure |
The most impactful risks are PEG’s and EVRG’s elevated debt levels combined with operational complexity in a highly regulated sector. Both show financial distress signs from Altman Z-Scores below 1.8, indicating heightened bankruptcy risk. Environmental transition poses medium-term challenges, especially for EVRG’s coal exposure. Investors should weigh these risks carefully against dividend yields and market stability.
Which Stock to Choose?
Public Service Enterprise Group Incorporated (PEG) shows a mixed income evolution with recent declines, a slightly unfavorable global ratios evaluation, moderate profitability, high debt levels, and a very favorable B- rating. Its MOAT analysis indicates value destruction despite a growing ROIC trend.
Evergy, Inc. (EVRG) exhibits favorable income growth and profitability, a slightly unfavorable global ratios evaluation with more unfavorable metrics than PEG, moderate debt, and a very favorable B- rating. Its MOAT status also suggests value destruction but with improving profitability.
For investors focused on growth and income improvement, EVRG’s favorable income trends and profitability growth may appear more attractive, while those valuing stability amid moderate debt and a solid rating might find PEG’s profile suitable. Both companies show slightly unfavorable MOATs and financial ratios, suggesting cautious interpretation.
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 Public Service Enterprise Group Incorporated and Evergy, Inc. to enhance your investment decisions:
