Pinnacle West Vs. Avista: A Classic Tradeoff For Investors

  • Pinnacle West and Avista represent a classic investing tradeoff: faster growth with greater risks and a richer valuation vs. slower growth with a lower ceiling at a discounted price. Pinnacle West offers higher long-term growth potential driven by Arizona's electrification, but risks include its heavier capex, regulatory uncertainty, and increased leverage. Avista has provided steadier returns, a higher dividend yield, and a more conservative balance sheet, but has limited long-term growth catalysts.