Entergy Corporation (ETR) vs National Grid Transco, PLC (NGG)

Entergy Corporation 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 $46.9B — 1.6× the size. National Grid Transco, PLC trades at the lower P/E: 20.7× against 24.9×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 9.55%. National Grid Transco, PLC has the higher net margin (26.1% vs 13.3%) and the lower return on invested capital (0.00% vs 4.06%). Both pay a dividend; National Grid Transco, PLC yields more (5.63% vs 4.45%). Across the 20 metrics below, National Grid Transco, PLC leads on 11 and Entergy Corporation on 9.

Valuation

Metric ETR NGG Utilities Regulated Electric median
P/E 24.89 20.71 18.84
P/S 3.35 n/m 2.52
P/B 2.48 n/m 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.07 4.18 11.82
EV/Sales 5.52 1.15 4.58
Earnings yield 4.02% 4.83% 5.30%
Free cash flow yield (6.55%) 0.00% (5.06%)

Profitability

Metric ETR NGG Utilities Regulated Electric median
Gross margin 70.78% 18.68% 66.28%
Operating margin 22.90% 0.00% 21.79%
Net margin 13.33% 26.11% 12.94%
Free cash flow margin (21.96%) 0.00% (11.51%)
Return on equity 10.44% 0.00% 9.75%
Return on assets 2.44% 0.00% 2.75%
Return on invested capital 4.06% 0.00% 3.87%

Growth

Metric ETR NGG Utilities Regulated Electric median
Revenue growth (TTM) 9.55% 29.86% 7.43%
EPS growth (last fiscal year) 59.59% 10.91% —
Revenue growth, 5-year CAGR 5.06% 4.16% 6.75%
Net income growth, 5-year CAGR 4.84% 15.15% 6.44%

Health

Metric ETR NGG Utilities Regulated Electric median
Debt to equity 1.80 1.19 1.53
Current ratio 0.91 0.76 0.81
Net debt to EBITDA 4.94 5.69 5.25

Dividend

Metric ETR NGG Utilities Regulated Electric median
Dividend yield 4.45% 5.63% 4.33%
Payout ratio 0.64 0.68 0.66

Size

Metric ETR NGG Utilities Regulated Electric median
Market cap 46.90b 76.37b 22.90b

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