National Grid Transco, PLC (NGG) & PPL Corporation (PPL) Critical Comparison

National Grid Transco, PLC (NYSE: NGG) and PPL Corporation (NYSE:PPL) are both large-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Dividends

National Grid Transco, PLC pays an annual dividend of $2.89 per share and has a dividend yield of 4.6%. PPL Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.1%. PPL Corporation pays out 66.1% of its earnings in the form of a dividend. National Grid Transco, PLC has raised its dividend for 5 consecutive years. National Grid Transco, PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

5.6% of National Grid Transco, PLC shares are owned by institutional investors. Comparatively, 71.0% of PPL Corporation shares are owned by institutional investors. 0.4% of PPL Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares National Grid Transco, PLC and PPL Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Grid Transco, PLC N/A N/A N/A
PPL Corporation 22.08% 15.96% 4.16%

Valuation and Earnings

This table compares National Grid Transco, PLC and PPL Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Grid Transco, PLC $19.56 billion 2.21 $6.62 billion N/A N/A
PPL Corporation $7.40 billion 3.61 $4.04 billion $2.39 16.28

National Grid Transco, PLC has higher revenue and earnings than PPL Corporation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for National Grid Transco, PLC and PPL Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Grid Transco, PLC 2 6 7 0 2.33
PPL Corporation 0 5 3 0 2.38

National Grid Transco, PLC presently has a consensus target price of $69.00, indicating a potential upside of 9.91%. PPL Corporation has a consensus target price of $38.36, indicating a potential downside of 1.45%. Given National Grid Transco, PLC’s higher probable upside, analysts plainly believe National Grid Transco, PLC is more favorable than PPL Corporation.

Volatility & Risk

National Grid Transco, PLC has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, PPL Corporation has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

PPL Corporation beats National Grid Transco, PLC on 8 of the 15 factors compared between the two stocks.

National Grid Transco, PLC 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.

PPL Corporation Company Profile

PPL Corporation (PPL) is a utility holding company. Through its subsidiaries, PPL delivers electricity to customers in the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee; delivers natural gas to customers in Kentucky, and generates electricity from power plants in Kentucky. PPL operates through U.K. Regulated Segment, Kentucky Regulated Segment and Pennsylvania Regulated Segment. The U.K. Regulated Segment consists of PPL Global, which includes PPL WPD Limited’s (WPD) regulated electricity distribution operations, the results of hedging the translation of WPD’s earnings from British pound sterling into United States dollars, and certain costs, such as the United States income taxes, administrative costs and allocated financing costs. Kentucky Regulated segment consists of the operations of Louisville Gas and Electric Company (LG&E) and KU Energy LLC (LKE). The Pennsylvania Regulated segment consists of PPL Electric Utilities Corporation (PPL Electric).

What are top analysts saying about National Grid Transco PLC? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for National Grid Transco PLC and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit