NextEra Energy, Inc. (NEE) vs National Grid Transco, PLC (NGG)

NextEra Energy, Inc. and National Grid Transco, PLC are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $76.4B — 2.1× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 20.7×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 10.8%. NextEra Energy, Inc. has the higher net margin (32.4% vs 26.1%) and the higher return on invested capital (3.05% vs 0.00%). Both pay a dividend; National Grid Transco, PLC yields more (5.63% vs 3.63%). Across the 20 metrics below, NextEra Energy, Inc. leads on 10 and National Grid Transco, PLC on 10.

Valuation

Metric NEE NGG Utilities Regulated Electric median
P/E 17.11 20.71 18.84
P/S 5.53 n/m 2.52
P/B 2.33 n/m 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.83 4.18 11.82
EV/Sales 9.27 1.15 4.58
Earnings yield 5.84% 4.83% 5.30%
Free cash flow yield (10.44%) 0.00% (5.06%)

Profitability

Metric NEE NGG Utilities Regulated Electric median
Gross margin 81.54% 18.68% 66.28%
Operating margin 29.82% 0.00% 21.79%
Net margin 32.40% 26.11% 12.94%
Free cash flow margin (57.72%) 0.00% (11.51%)
Return on equity 14.42% 0.00% 9.75%
Return on assets 4.31% 0.00% 2.75%
Return on invested capital 3.05% 0.00% 3.87%

Growth

Metric NEE NGG Utilities Regulated Electric median
Revenue growth (TTM) 10.81% 29.86% 7.43%
EPS growth (last fiscal year) (2.08%) 10.91% —
Revenue growth, 5-year CAGR 8.78% 4.16% 6.75%
Net income growth, 5-year CAGR 18.55% 15.15% 6.44%

Health

Metric NEE NGG Utilities Regulated Electric median
Debt to equity 1.62 1.19 1.53
Current ratio 0.53 0.76 0.81
Net debt to EBITDA 6.10 5.69 5.25

Dividend

Metric NEE NGG Utilities Regulated Electric median
Dividend yield 3.63% 5.63% 4.33%
Payout ratio 0.44 0.68 0.66

Size

Metric NEE NGG Utilities Regulated Electric median
Market cap 158.26b 76.37b 22.90b

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