National Grid (NYSE: NGG) and EnLink Midstream Partners (NYSE:ENLK) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Earnings and Valuation
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This table compares National Grid and EnLink Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Grid||$20.22 billion||1.86||$4.71 billion||$3.93||14.15|
|EnLink Midstream Partners||$5.74 billion||0.94||$148.90 million||$0.03||512.67|
National Grid has higher revenue and earnings than EnLink Midstream Partners. National Grid is trading at a lower price-to-earnings ratio than EnLink Midstream Partners, indicating that it is currently the more affordable of the two stocks.
This table compares National Grid and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EnLink Midstream Partners||3.09%||4.52%||1.88%|
National Grid pays an annual dividend of $4.08 per share and has a dividend yield of 7.3%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 10.1%. National Grid pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
5.4% of National Grid shares are owned by institutional investors. Comparatively, 41.5% of EnLink Midstream Partners shares are owned by institutional investors. 0.2% of EnLink Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
National Grid has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for National Grid and EnLink Midstream Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||11||4||0||2.27|
EnLink Midstream Partners has a consensus price target of $16.69, indicating a potential upside of 8.53%. Given EnLink Midstream Partners’ higher probable upside, analysts clearly believe EnLink Midstream Partners is more favorable than National Grid.
EnLink Midstream Partners beats National Grid on 9 of the 16 factors compared between the two stocks.
About National Grid
National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, and US Regulated segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,200 kilometers of overhead lines; 1,500 kilometers of underground cables; and 346 substations located in England and Wales. It also operates the Scottish networks. The UK Gas Transmission segment owns and operates gas transmission systems that include approximately 7,660 kilometers of high pressure pipes and 24 compressor stations connecting 8 distribution networks in Great Britain. The US Regulated segment owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,293 kilometers of overhead lines; 168 kilometers of underground cables; 387 transmission substations; and 740 distribution substations. This segment also engages in owning and operating gas distribution networks in upstate New York, New York City, Long Island, Massachusetts, and Rhode Island. The company is also involved in gas metering, property management, liquefied natural gas (LNG) importation terminal, and LNG operations, as well as the operation of Great Britain-France interconnector. National Grid plc was founded in 1990 and is headquartered in London, the United Kingdom.
About EnLink Midstream Partners
EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It operates through Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate segments. The company provides gathering, transmission, processing, fractionation, storage, condensate stabilization, brine, and marketing services to producers of natural gas, natural gas liquids (NGL), crude oil, and condensate. It operates processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by its own gathering systems or by third-party pipelines; and purchases natural gas and NGLs from producers and other supply sources, and sells that natural gas to utilities, industrial consumers, other marketers, and pipelines. The company also fractionates NGLs into purity products, such as ethane, propane, iso-butane, butane, and natural gasoline. It operates approximately 11,000 miles of pipelines, 20 natural gas processing plants, 7 fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, and brine disposal wells, as well as a crude oil trucking fleet. EnLink Midstream GP, LLC serves as the general partner of the company. The company was formerly known as Crosstex Energy L.P. and changed its name to EnLink Midstream Partners, LP in March 2014. EnLink Midstream Partners, LP was founded in 1992 and is headquartered in Dallas, Texas.