CMS vs. WTRG: CMS Energy vs. Essential Utilities Stock Comparison
How do CMS Energy (CMS) and Essential Utilities (WTRG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
CMS Energy (CMS) and Essential Utilities (WTRG) both fall under the Utilities industry group, but CMS is classified in Multi-Utilities while WTRG is classified in Water Utilities.
| Profile Item | CMS | WTRG |
|---|---|---|
| Name | CMS Energy Corporation Common Stock | Essential Utilities Inc. |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Multi-Utilities | Water Utilities |
| GICS Sub-Industry | Multi-Utilities | Water Utilities |
| Market Capitalization | 21.70 billion USD | 13.02 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Total Return (1Y) | -1.93% | 19.07% |
| Total Return (3Y, Annualized) | 11.79% | 13.95% |
| Total Return (5Y, Annualized) | 6.25% | 2.39% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Volatility (1Y, Annualized) | 17.58% | 22.14% |
| Beta (5Y) | 0.31 | 0.61 |
| Max Drawdown (5Y) | -28.04% | -36.53% |
| Avg. Volume (3M) | 3.84M | 2.38M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Sharpe Ratio (1Y) | -0.35 | 0.67 |
| Sortino Ratio (1Y) | -0.49 | 1.08 |
Profitability
ROE (TTM)
Essential Utilities (WTRG) at 8.13% is around its peer norm for ROE, while CMS Energy (CMS) at 5.31% drops into the bottom quartile, signaling weaker returns on shareholders’ equity.
CMS
Utilities industry group
5.31%
- Max
- 17.99%
- Q3
- 12.01%
- Median
- 9.44%
- Q1
- 7.56%
- CMS
- 5.31%
- Min
- 2.17%
WTRG
Utilities industry group
8.13%
- Max
- 17.99%
- Q3
- 12.01%
- Median
- 9.44%
- WTRG
- 8.13%
- Q1
- 7.56%
- Min
- 2.17%
Net Margin (TTM)
Essential Utilities (WTRG) at 21.79% retains a top-quartile share of revenue as profit, ahead of CMS Energy (CMS) at 9.72%, which keeps about the industry-typical share.
CMS
Utilities industry group
9.72%
- Max
- 28.78%
- Q3
- 17.30%
- Median
- 12.73%
- CMS
- 9.72%
- Q1
- 9.18%
- Min
- -0.20%
WTRG
Utilities industry group
21.79%
- Max
- 28.78%
- WTRG
- 21.79%
- Q3
- 17.30%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
Operating Margin (TTM)
Essential Utilities (WTRG) at 38.94% operates in the top operating margin quartile, ahead of CMS Energy (CMS) at 28.45%, which runs around its industry’s norm.
CMS
Utilities industry group
28.45%
- Max
- 53.83%
- Q3
- 31.12%
- CMS
- 28.45%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
WTRG
Utilities industry group
38.94%
- Max
- 53.83%
- WTRG
- 38.94%
- Q3
- 31.12%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
Profitability Metrics
| Metric | CMS | WTRG |
|---|---|---|
| ROE (TTM) | 5.31% | 8.13% |
| ROA (TTM) | 3.07% | 3.00% |
| Net Margin (TTM) | 9.72% | 21.79% |
| Operating Margin (TTM) | 28.45% | 38.94% |
| Gross Margin (TTM) | 40.76% | 57.07% |
Growth
Revenue Growth
Both CMS Energy (CMS) at 13.63% and Essential Utilities (WTRG) at 18.62% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.
EPS Growth
Both CMS Energy (CMS) at 4.19% and Essential Utilities (WTRG) at 1.38% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Revenue Growth (YoY) | 13.63% | 18.62% |
| Revenue Growth (3Y CAGR) | -0.22% | 2.65% |
| EPS Growth (YoY) | 4.19% | 1.38% |
| EPS Growth (3Y CAGR) | 6.84% | 7.52% |
Financial Strength
Current Ratio (MRQ)
CMS Energy (CMS) at 0.95 keeps current ratio within its industry’s typical mid-range, while Essential Utilities (WTRG) at 0.40 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WTRG.
CMS
Utilities industry group
0.95
- Max
- 1.90
- Q3
- 1.17
- CMS
- 0.95
- Median
- 0.88
- Q1
- 0.66
- Min
- 0.29
WTRG
Utilities industry group
0.40
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- WTRG
- 0.40
- Min
- 0.29
Debt / Equity (MRQ)
Essential Utilities (WTRG) at 1.23 carries an industry-typical debt-to-equity mix, while CMS Energy (CMS) at 1.96 uses more debt funding than most peers.
CMS
Utilities industry group
1.96
- Max
- 2.63
- CMS
- 1.96
- Q3
- 1.77
- Median
- 1.35
- Q1
- 0.84
- Min
- 0.00
WTRG
Utilities industry group
1.23
- Max
- 2.63
- Q3
- 1.77
- Median
- 1.35
- WTRG
- 1.23
- Q1
- 0.84
- Min
- 0.00
Financial Strength Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Current Ratio (MRQ) | 0.95 | 0.40 |
| Debt / Equity (MRQ) | 1.96 | 1.23 |
| Net Debt / EBITDA | 6.33 | 6.30 |
Dividends
Dividend Yield (TTM)
Both CMS Energy (CMS) at 3.21% and Essential Utilities (WTRG) at 3.01% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
CMS
Utilities industry group
3.21%
- Max
- 6.66%
- Q3
- 3.58%
- CMS
- 3.21%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
WTRG
Utilities industry group
3.01%
- Max
- 6.66%
- Q3
- 3.58%
- WTRG
- 3.01%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both CMS Energy (CMS) at 80.45% and Essential Utilities (WTRG) at 69.42% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
CMS
Utilities industry group
80.45%
- Max
- 113.04%
- CMS
- 80.45%
- Q3
- 68.72%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
WTRG
Utilities industry group
69.42%
- Max
- 113.04%
- WTRG
- 69.42%
- Q3
- 68.72%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
Dividend Metrics
| Metric | CMS | WTRG |
|---|---|---|
| Dividend Yield (TTM) | 3.21% | 3.01% |
| Dividend Payout Ratio (TTM) | 80.45% | 69.42% |
Valuation
P/E Ratio (TTM)
Essential Utilities (WTRG) at 22.73 is near its industry’s usual P/E ratio, while CMS Energy (CMS) at 24.71 sits in the richer quartile — CMS needs stronger growth or earnings quality to justify the premium.
CMS
Utilities industry group
24.71
- Max
- 31.22
- CMS
- 24.71
- Q3
- 23.30
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
WTRG
Utilities industry group
22.73
- Max
- 31.22
- Q3
- 23.30
- WTRG
- 22.73
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
P/S Ratio (TTM)
CMS Energy (CMS) at 2.42 is priced about in line with its industry on P/S ratio, while Essential Utilities (WTRG) at 5.01 sits in the pricier quartile — WTRG costs more per dollar of sales.
CMS
Utilities industry group
2.42
- Max
- 6.35
- Q3
- 3.63
- Median
- 2.63
- CMS
- 2.42
- Q1
- 1.52
- Min
- 0.00
WTRG
Utilities industry group
5.01
- Max
- 6.35
- WTRG
- 5.01
- Q3
- 3.63
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
P/B Ratio (MRQ)
Essential Utilities (WTRG) at 1.83 is valued about in line with its industry on P/B ratio, while CMS Energy (CMS) at 2.28 carries an above-peer premium to book — CMS is pricier on assets.
CMS
Utilities industry group
2.28
- Max
- 3.12
- CMS
- 2.28
- Q3
- 2.21
- Median
- 1.83
- Q1
- 1.46
- Min
- 0.34
WTRG
Utilities industry group
1.83
- Max
- 3.12
- Q3
- 2.21
- Median
- 1.83
- WTRG
- 1.83
- Q1
- 1.46
- Min
- 0.34
Valuation Metrics
| Metric | CMS | WTRG |
|---|---|---|
| P/E Ratio (TTM) | 24.71 | 22.73 |
| P/S Ratio (TTM) | 2.42 | 5.01 |
| P/B Ratio (MRQ) | 2.28 | 1.83 |
| Free Cash Flow Yield (TTM) | -9.54% | -5.45% |