National Grid Transco, PLC (NGG) vs Xcel Energy Inc. (XEL)

National Grid Transco, PLC and Xcel Energy Inc. are both Utilities Regulated Electric companies. National Grid Transco, PLC is the larger, with a market value of $76.4B against $43.4B — 1.8× the size. Xcel Energy Inc. trades at the lower P/E: 19.0× against 20.7×. National Grid Transco, PLC grew revenue faster over the last twelve months: 29.9% against 4.72%. National Grid Transco, PLC has the higher net margin (26.1% vs 15.3%) and the lower return on invested capital (0.00% vs 2.83%). Both pay a dividend; National Grid Transco, PLC yields more (5.63% vs 3.79%). Across the 20 metrics below, National Grid Transco, PLC leads on 12 and Xcel Energy Inc. on 8.

Valuation

Metric NGG XEL Utilities Regulated Electric median
P/E 20.71 19.02 18.84
P/S n/m 2.98 2.52
P/B n/m 1.81 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 4.18 13.89 11.82
EV/Sales 1.15 5.55 4.58
Earnings yield 4.83% 5.26% 5.30%
Free cash flow yield 0.00% (17.63%) (5.06%)

Profitability

Metric NGG XEL Utilities Regulated Electric median
Gross margin 18.68% 67.57% 66.28%
Operating margin 0.00% 19.08% 21.79%
Net margin 26.11% 15.28% 12.94%
Free cash flow margin 0.00% (52.63%) (11.51%)
Return on equity 0.00% 9.92% 9.75%
Return on assets 0.00% 2.75% 2.75%
Return on invested capital 0.00% 2.83% 3.87%

Growth

Metric NGG XEL Utilities Regulated Electric median
Revenue growth (TTM) 29.86% 4.72% 7.43%
EPS growth (last fiscal year) 10.91% (0.58%) —
Revenue growth, 5-year CAGR 4.16% 4.94% 6.75%
Net income growth, 5-year CAGR 15.15% 6.50% 6.44%

Health

Metric NGG XEL Utilities Regulated Electric median
Debt to equity 1.19 1.64 1.53
Current ratio 0.76 0.70 0.81
Net debt to EBITDA 5.69 5.93 5.25

Dividend

Metric NGG XEL Utilities Regulated Electric median
Dividend yield 5.63% 3.79% 4.33%
Payout ratio 0.68 0.64 0.66

Size

Metric NGG XEL Utilities Regulated Electric median
Market cap 76.37b 43.36b 22.90b

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