Analyzing Centuri (NYSE:CTRI) and CMS Energy (NYSE:CMS)

Centuri (NYSE:CTRI) and CMS Energy (NYSE:CMS) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Centuri and CMS Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centuri	2	1	2	0	2.00
CMS Energy	0	6	7	0	2.54

Centuri currently has a consensus target price of $28.85, indicating a potential downside of 12.85%. CMS Energy has a consensus target price of $80.00, indicating a potential upside of 2.90%. Given CMS Energy’s stronger consensus rating and higher probable upside, analysts plainly believe CMS Energy is more favorable than Centuri.

Risk and Volatility

Centuri has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, CMS Energy has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares Centuri and CMS Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centuri	0.76%	5.09%	1.50%
CMS Energy	12.54%	12.09%	2.87%

Insider and Institutional Ownership

93.6% of CMS Energy shares are held by institutional investors. 0.2% of Centuri shares are held by insiders. Comparatively, 0.5% of CMS Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Centuri and CMS Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centuri	$2.98 billion	1.12	$22.40 million	$0.23	143.92
CMS Energy	$8.54 billion	2.80	$1.07 billion	$3.53	22.02

CMS Energy has higher revenue and earnings than Centuri. CMS Energy is trading at a lower price-to-earnings ratio than Centuri, indicating that it is currently the more affordable of the two stocks.

Summary

CMS Energy beats Centuri on 12 of the 14 factors compared between the two stocks.

About Centuri

Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.

About CMS Energy

CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in the generation, purchase, transmission, distribution, and sale of electricity. This segment generates electricity through coal, wind, gas, renewable energy, oil, and nuclear sources. Its distribution system comprises 208 miles of high-voltage distribution overhead lines; 4 miles of high-voltage distribution underground lines; 4,428 miles of high-voltage distribution overhead lines; 19 miles of high-voltage distribution underground lines; 82,474 miles of electric distribution overhead lines; 9,395 miles of underground distribution lines; 1,093 substations; and 3 battery facilities. The Gas Utility segment engages in the purchase, transmission, storage, distribution, and sale of natural gas, which includes 2,392 miles of transmission lines; 15 gas storage fields; 28,065 miles of distribution mains; and 8 compressor stations. The Enterprises segment is involved in the independent power production and marketing, including the development and operation of renewable generation. It serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial customers. The company was incorporated in 1987 and is headquartered in Jackson, Michigan.