Consolidated Edison Inc (ED) vs National Grid Transco, PLC (NGG)

Consolidated Edison 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 $37.9B — 2.0× the size. Consolidated Edison Inc trades at the lower P/E: 16.9× against 20.7×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 9.54%. National Grid Transco, PLC has the higher net margin (26.1% vs 12.5%) and the lower return on invested capital (0.00% vs 3.88%). Both pay a dividend; National Grid Transco, PLC yields more (5.63% vs 3.68%). Across the 20 metrics below, Consolidated Edison Inc leads on 11 and National Grid Transco, PLC on 9.

Valuation

Metric ED NGG Utilities Regulated Electric median
P/E 16.87 20.71 18.84
P/S 2.15 n/m 2.52
P/B 1.48 n/m 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 11.54 4.18 11.82
EV/Sales 3.60 1.15 4.58
Earnings yield 5.93% 4.83% 5.30%
Free cash flow yield (3.42%) 0.00% (5.06%)

Profitability

Metric ED NGG Utilities Regulated Electric median
Gross margin 74.74% 18.68% 66.28%
Operating margin 18.00% 0.00% 21.79%
Net margin 12.54% 26.11% 12.94%
Free cash flow margin (7.35%) 0.00% (11.51%)
Return on equity 8.97% 0.00% 9.75%
Return on assets 3.00% 0.00% 2.75%
Return on invested capital 3.88% 0.00% 3.87%

Growth

Metric ED NGG Utilities Regulated Electric median
Revenue growth (TTM) 9.54% 29.86% 7.43%
EPS growth (last fiscal year) 7.63% 10.91% —
Revenue growth, 5-year CAGR 6.68% 4.16% 6.75%
Net income growth, 5-year CAGR 12.94% 15.15% 6.44%

Health

Metric ED NGG Utilities Regulated Electric median
Debt to equity 1.05 1.19 1.53
Current ratio 1.27 0.76 0.81
Net debt to EBITDA 4.69 5.69 5.25

Dividend

Metric ED NGG Utilities Regulated Electric median
Dividend yield 3.68% 5.63% 4.33%
Payout ratio 0.46 0.68 0.66

Size

Metric ED NGG Utilities Regulated Electric median
Market cap 37.85b 76.37b 22.90b

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