Analyzing National Grid Transco (NGG) & The Competition
National Grid Transco (NYSE: NGG) is one of 18 public companies in the “Multiline Utilities” industry, but how does it contrast to its rivals? We will compare National Grid Transco to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.
This table compares National Grid Transco and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Grid Transco||N/A||N/A||N/A|
|National Grid Transco Competitors||8.84%||9.19%||2.54%|
National Grid Transco has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, National Grid Transco’s rivals have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for National Grid Transco and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Grid Transco||1||5||6||0||2.42|
|National Grid Transco Competitors||340||973||844||6||2.24|
National Grid Transco presently has a consensus price target of $69.00, indicating a potential upside of 14.92%. As a group, “Multiline Utilities” companies have a potential upside of 11.34%. Given National Grid Transco’s stronger consensus rating and higher possible upside, research analysts clearly believe National Grid Transco is more favorable than its rivals.
National Grid Transco pays an annual dividend of $1.87 per share and has a dividend yield of 3.1%. National Grid Transco pays out 58.1% of its earnings in the form of a dividend. As a group, “Multiline Utilities” companies pay a dividend yield of 3.0% and pay out 73.5% of their earnings in the form of a dividend. National Grid Transco is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
5.6% of National Grid Transco shares are held by institutional investors. Comparatively, 67.2% of shares of all “Multiline Utilities” companies are held by institutional investors. 3.1% of shares of all “Multiline Utilities” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares National Grid Transco and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|National Grid Transco||$18.62 billion||$10.19 billion||18.65|
|National Grid Transco Competitors||$6.18 billion||$1.36 billion||499.85|
National Grid Transco has higher revenue and earnings than its rivals. National Grid Transco is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
National Grid Transco Company Profile
National Grid plc is an electricity and gas utility company focused on transmission and distribution activities in electricity and gas in both the United Kingdom and the United States. The Company’s segments include UK Electricity Transmission, which is engaged in high voltage electricity transmission networks in Great Britain; UK Gas Transmission, which is the gas transmission network in Great Britain and United Kingdom liquefied natural gas (LNG) storage activities; UK Gas Distribution, which includes approximately four of the eight regional networks of Great Britain’s gas distribution system, and US Regulated, which includes gas distribution networks, electricity distribution networks and high voltage electricity transmission networks in New York, and New England and electricity generation facilities in New York. Its other activities relate to non-regulated businesses and other commercial operations not included within the above segments.
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