Dominion Energy Inc. (D) vs National Grid Transco, PLC (NGG)

Dominion Energy Inc. and National Grid Transco, PLC are both Utilities Regulated Electric companies. National Grid Transco, PLC is the larger, with a market value of $79.5B against $55.3B — 1.4× the size. Dominion Energy Inc. trades at the lower P/E: 22.2× against 22.3×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 19.0%. National Grid Transco, PLC has the higher net margin (26.1% vs 14.0%) and the lower return on invested capital (0.00% vs 2.75%). Both pay a dividend; Dominion Energy Inc. yields more (4.19% vs 3.99%). Across the 20 metrics below, Dominion Energy Inc. leads on 10 and National Grid Transco, PLC on 10.

Valuation

Metric D NGG Utilities Regulated Electric median
P/E 22.18 22.28 19.47
P/S 3.09 n/m 2.78
P/B 1.72 n/m 1.77
Price to free cash flow n/m n/m 38.27
EV/EBITDA 16.59 4.18 12.25
EV/Sales 6.02 1.15 4.74
Earnings yield 4.51% 4.49% 5.02%
Free cash flow yield (12.21%) 0.00% (5.09%)

Profitability

Metric D NGG Utilities Regulated Electric median
Gross margin 66.84% 18.68% 66.28%
Operating margin 21.06% 0.00% 21.79%
Net margin 13.99% 26.11% 12.94%
Free cash flow margin (37.72%) 0.00% (11.51%)
Return on equity 8.11% 0.00% 9.75%
Return on assets 2.21% 0.00% 2.75%
Return on invested capital 2.75% 0.00% 3.87%

Growth

Metric D NGG Utilities Regulated Electric median
Revenue growth (TTM) 18.99% 29.86% 7.43%
EPS growth (last fiscal year) 41.39% 10.91% 7.45%
Revenue growth, 5-year CAGR 3.10% 4.16% 6.75%
Net income growth, 5-year CAGR 0.00% 15.15% 6.44%

Health

Metric D NGG Utilities Regulated Electric median
Debt to equity 1.59 1.19 1.53
Current ratio 0.81 0.76 0.81
Net debt to EBITDA 6.86 5.69 5.25

Dividend

Metric D NGG Utilities Regulated Electric median
Dividend yield 4.19% 3.99% 3.29%
Payout ratio 0.93 — 0.66

Size

Metric D NGG Utilities Regulated Electric median
Market cap 55.29b 79.50b 23.14b

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