American Electric Power Company, Inc. (AEP) vs National Grid Transco, PLC (NGG)

American Electric Power Company, Inc. and National Grid Transco, PLC are both Utilities Regulated Electric companies. National Grid Transco, PLC is the larger, with a market value of $76.4B against $64.1B — 1.2× the size. American Electric Power Company, Inc. trades at the lower P/E: 20.3× against 20.7×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 10.3%. National Grid Transco, PLC has the higher net margin (26.1% vs 13.8%) and the lower return on invested capital (0.00% vs 3.83%). Both pay a dividend; National Grid Transco, PLC yields more (5.63% vs 4.44%). Across the 20 metrics below, American Electric Power Company, Inc. leads on 10 and National Grid Transco, PLC on 10.

Valuation

Metric AEP NGG Utilities Regulated Electric median
P/E 20.30 20.71 18.84
P/S 2.83 n/m 2.52
P/B 1.93 n/m 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.15 4.18 11.82
EV/Sales 5.11 1.15 4.58
Earnings yield 4.93% 4.83% 5.30%
Free cash flow yield (3.81%) 0.00% (5.06%)

Profitability

Metric AEP NGG Utilities Regulated Electric median
Gross margin 67.72% 18.68% 66.28%
Operating margin 23.00% 0.00% 21.79%
Net margin 13.78% 26.11% 12.94%
Free cash flow margin (10.78%) 0.00% (11.51%)
Return on equity 9.78% 0.00% 9.75%
Return on assets 2.74% 0.00% 2.75%
Return on invested capital 3.83% 0.00% 3.87%

Growth

Metric AEP NGG Utilities Regulated Electric median
Revenue growth (TTM) 10.28% 29.86% 7.43%
EPS growth (last fiscal year) 19.64% 10.91% —
Revenue growth, 5-year CAGR 7.96% 4.16% 6.75%
Net income growth, 5-year CAGR 10.23% 15.15% 6.44%

Health

Metric AEP NGG Utilities Regulated Electric median
Debt to equity 1.59 1.19 1.53
Current ratio 0.50 0.76 0.81
Net debt to EBITDA 5.49 5.69 5.25

Dividend

Metric AEP NGG Utilities Regulated Electric median
Dividend yield 4.44% 5.63% 4.33%
Payout ratio 0.85 0.68 0.66

Size

Metric AEP NGG Utilities Regulated Electric median
Market cap 64.06b 76.37b 22.90b

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