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CNP vs FTS

CNP
CenterPoint Energy, Inc.
NEUTRAL
Price
$42.47
Market Cap
$27.78B
Sector
Utilities
AI Confidence
85%
FTS
Fortis Inc.
NEUTRAL
Price
$56.33
Market Cap
$28.68B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
CNP
26.06
FTS
22.62
Forward P/E
CNP
20.4
FTS
19.92
P/B Ratio
CNP
2.49
FTS
1.77
P/S Ratio
CNP
2.95
FTS
2.36
EV/EBITDA
CNP
14.0
FTS
11.83

Profitability

Gross Margin
CNP
45.92%
FTS
45.6%
Operating Margin
CNP
22.12%
FTS
28.9%
Profit Margin
CNP
11.38%
FTS
14.78%
ROE
CNP
9.56%
FTS
7.58%
ROA
CNP
2.84%
FTS
3.01%

Growth

Revenue Growth
CNP
1.9%
FTS
4.4%
Earnings Growth
CNP
6.7%
FTS
5.0%

Financial Health

Debt/Equity
CNP
2.16
FTS
1.34
Current Ratio
CNP
1.17
FTS
0.51
Quick Ratio
CNP
0.47
FTS
0.25

Dividends

Dividend Yield
CNP
2.17%
FTS
3.28%
Payout Ratio
CNP
54.6%
FTS
73.09%

AI Verdict

CNP NEUTRAL

CNP presents a conflict between strong historical performance and current overvaluation. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $42.47 that significantly exceeds both the Graham Number ($25.03) and Intrinsic Value ($27.79). While the company maintains healthy operating margins and a sustainable dividend payout, the high Debt/Equity ratio (2.16) and bearish technical trend (10/100) suggest limited immediate upside. The stock is currently trading at a premium that is not fully supported by its low revenue growth (1.90%).

Strengths
Consistent track record of earnings beats over 25 quarters
Strong operating margin of 22.12% compared to sector peers
Sustainable dividend payout ratio of 54.60%
Risks
Significant valuation gap between current price and Graham/Intrinsic values
High leverage with a Debt/Equity ratio of 2.16
Stagnant revenue growth (1.90% YoY)
FTS NEUTRAL

Fortis Inc. presents a stable but overvalued profile, characterized by a Piotroski F-Score of 4/9 and a significant premium over its Graham Number ($42.28) and Intrinsic Value ($36.11). While the company maintains superior profit margins and a healthier Debt/Equity ratio than its sector peers, it suffers from severe short-term liquidity constraints with a Current Ratio of 0.51. Growth is sluggish compared to the utility sector average, and the technical trend is strongly bearish. The stock currently functions as a low-growth defensive play trading at a valuation that exceeds its fundamental baseline.

Strengths
Profit margins (14.78%) are significantly higher than the sector average (6.78%)
Debt/Equity ratio (1.34) is lower than the sector average (1.63)
Positive ROE (7.58%) compared to a negative sector average (-0.86%)
Risks
Severe liquidity risk indicated by a Current Ratio of 0.51 and Quick Ratio of 0.25
Trading at a substantial premium to Graham Number ($42.28) and Intrinsic Value ($36.11)
Revenue growth (4.40%) is drastically lagging behind the sector average (19.38%)

Compare Another Pair

CNP vs FTS: Head-to-Head Comparison

This page compares CenterPoint Energy, Inc. (CNP) and Fortis Inc. (FTS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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