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CMS vs PNW
Which Stock Would AI Choose? CMS Energy Corporation (CMS) vs. Pinnacle West Capital Corporation (PNW) Stock Comparison
Key Takeaways
- Both CMS and PNW operate as regulated electric utilities, offering defensive characteristics with low betas around 0.42-0.48 in recent market activity.
- PNW has outperformed CMS year-to-date with approximately 18% gains compared to 10%, driven by robust customer growth in Arizona.
- CMS recently reported strong Q1 2026 adjusted earnings per share (EPS) of $1.13, beating estimates and reaffirming full-year guidance.
- PNW provides a higher dividend yield of about 3.5% versus CMS's 3.0%, appealing to income-focused investors.
- Recent quarterly revenue growth favors CMS at 11.6% over PNW's 3.0%, highlighting differing operational momentum.
- Both stocks exhibit similar price-to-earnings (P/E) ratios in the low 20s, reflecting stable utility valuations.
Introduction
This stock comparison examines CMS Energy Corporation and Pinnacle West Capital Corporation (PNW), two prominent regulated electric utilities. Investors seeking defensive positions amid market volatility often turn to utilities for reliable dividends and low volatility. With interest rate sensitivity and growing demand from data centers influencing the sector, this analysis highlights relative performance, growth drivers, and sentiment shifts in recent market activity. Traders may use these insights for position sizing in portfolios emphasizing stability and income generation.
CMS Overview and Recent Performance
CMS Energy Corporation, headquartered in Michigan, operates electric and gas utilities serving nearly 2 million electric and 1.8 million gas customers. Its segments include electric utility, gas utility, and NorthStar Clean Energy for renewables. In recent weeks, the stock has traded around $76-77, with a market cap of approximately $23.7 billion. Year-to-date gains stand at about 10%, supported by a beta of 0.42 indicating lower volatility. Key influences include a Q1 2026 adjusted EPS beat of $1.13 versus estimates of $1.11, revenue of $2.73 billion up 11.6% quarter-over-quarter, and reaffirmed 2026 guidance of $3.83-$3.90 per share. Positive sentiment stems from data center demand and favorable Michigan regulations, alongside investments in clean energy.
PNW Overview and Recent Performance
Pinnacle West Capital Corporation (PNW), based in Arizona, focuses on retail and wholesale electric services through its subsidiary Arizona Public Service. It generates power from nuclear, gas, coal, oil, and solar sources. Recently, shares have hovered near $104, with a market cap around $12.6 billion. Year-to-date performance reaches about 18%, bolstered by a beta of 0.48. Recent developments feature quarterly dividend declarations and anticipation for Q1 2026 earnings on May 4, following a Q4 2025 EPS beat. Customer growth and operational reliability have driven sentiment, though revenue growth lagged at 3% in the latest quarter. The stock's resilience reflects Arizona's strong demand amid broader utility sector trends.
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Head-to-Head Comparison
Both companies share regulated electric utility models but differ regionally: CMS diversifies with gas and clean energy in Michigan, while PNW concentrates on Arizona electricity. Growth drivers favor CMS via data centers and 11.6% revenue growth, versus PNW’s customer expansion. Recent momentum tilts to PNW with superior YTD and one-year returns. Risk factors include high debt-to-equity ratios (190% for CMS, 202% for PNW), interest rate exposure, and regulatory shifts. Sector exposure is identical in Utilities-Regulated Electric, but PNW’s higher yield (3.5%) contrasts CMS’s stronger return on equity (10.4% vs. 9.1%). Market sentiment reflects stability for both amid volatility.
Tickeron AI Verdict
Tickeron’s AI tools, analyzing trend consistency, stability, and catalysts, would currently favor PNW over CMS. PNW’s stronger recent momentum, higher dividend yield, and year-to-date outperformance position it better for defensive plays with income potential. While CMS shows earnings strength and growth, PNW’s relative stability edges it probabilistically in the near term based on observable patterns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CMS is a StrongBuy and PNW is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CMS’s FA Score shows that 0 FA rating(s) are green whilePNW’s FA Score has 2 green FA rating(s).
- CMS’s FA Score: 0 green, 5 red.
- PNW’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CMS’s TA Score shows that 4 TA indicator(s) are bullish while PNW’s TA Score has 4 bullish TA indicator(s).
- CMS’s TA Score: 4 bullish, 3 bearish.
- PNW’s TA Score: 4 bullish, 5 bearish.
Price Growth
CMS (@Electric Utilities) experienced а +2.12% price change this week, while PNW (@Electric Utilities) price change was +0.37% for the same time period.
The average weekly price growth across all stocks in the @Electric Utilities industry was +0.73%. For the same industry, the average monthly price growth was +1.38%, and the average quarterly price growth was +8.66%.
Reported Earning Dates
CMS is expected to report earnings on Jul 23, 2026.
PNW is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Electric Utilities (+0.73% weekly)Electric utilities companies generate, transmit and distribute electricity to businesses/offices and residences. Companies may be owned by the government or investors or public shareholders, or a combination thereof. The industry also includes firms that buy and sell electricity. Companies in this industry typically require significant investments in infrastructure. Many firms in this industry pay substantial and regular dividends to shareholders. However, changes in interest rates (and their impact on debt burdens), natural disasters and changing commodity prices could be factors affecting energy utilities’ profit margins. NextEra Energy, Inc., Duke Energy Corporation, Dominion Energy Inc. and Southern Company are among U.S. electric utilities companies with the largest market capitalizations.
| CMS | PNW | CMS / PNW | |
| Capitalization | 22.7B | 12.5B | 182% |
| EBITDA | 3.4B | 2.2B | 154% |
| Gain YTD | 6.816 | 18.807 | 36% |
| P/E Ratio | 20.35 | 19.30 | 105% |
| Revenue | 8.82B | 5.46B | 162% |
| Total Cash | 175M | 6.41M | 2,731% |
| Total Debt | 19.1B | 15.1B | 126% |
CMS | PNW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 25 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 55 Fair valued | |
PROFIT vs RISK RATING 1..100 | 46 | 28 | |
SMR RATING 1..100 | 64 | 74 | |
PRICE GROWTH RATING 1..100 | 53 | 29 | |
P/E GROWTH RATING 1..100 | 54 | 46 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
PNW's Valuation (55) in the Electric Utilities industry is in the same range as CMS (71). This means that PNW’s stock grew similarly to CMS’s over the last 12 months.
PNW's Profit vs Risk Rating (28) in the Electric Utilities industry is in the same range as CMS (46). This means that PNW’s stock grew similarly to CMS’s over the last 12 months.
CMS's SMR Rating (64) in the Electric Utilities industry is in the same range as PNW (74). This means that CMS’s stock grew similarly to PNW’s over the last 12 months.
PNW's Price Growth Rating (29) in the Electric Utilities industry is in the same range as CMS (53). This means that PNW’s stock grew similarly to CMS’s over the last 12 months.
PNW's P/E Growth Rating (46) in the Electric Utilities industry is in the same range as CMS (54). This means that PNW’s stock grew similarly to CMS’s over the last 12 months.
| CMS | PNW | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 42% | 2 days ago 51% |
| Momentum ODDS (%) | 2 days ago 51% | 2 days ago 49% |
| MACD ODDS (%) | 2 days ago 37% | 2 days ago 51% |
| TrendWeek ODDS (%) | 2 days ago 47% | 2 days ago 50% |
| TrendMonth ODDS (%) | 2 days ago 45% | 2 days ago 46% |
| Advances ODDS (%) | 4 days ago 49% | 4 days ago 53% |
| Declines ODDS (%) | 13 days ago 39% | 13 days ago 48% |
| BollingerBands ODDS (%) | 2 days ago 58% | 2 days ago 51% |
| Aroon ODDS (%) | 2 days ago 21% | 2 days ago 46% |
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CMS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMS has been closely correlated with DTE. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if CMS jumps, then DTE could also see price increases.
PNW and
Correlation & Price change
A.I.dvisor indicates that over the last year, PNW has been closely correlated with DUK. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if PNW jumps, then DUK could also see price increases.