Wec Acquisition (TEG) vs. National Grid (NGG) Critical Review

Wec Acquisition (NYSE: TEG) and National Grid (NYSE:NGG) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Earnings & Valuation

This table compares Wec Acquisition and National Grid’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wec Acquisition N/A N/A N/A $3.29 21.16
National Grid $18.62 billion 1.94 $10.19 billion N/A N/A

National Grid has higher revenue and earnings than Wec Acquisition.

Profitability

This table compares Wec Acquisition and National Grid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wec Acquisition 11.28% 15.70% 4.69%
National Grid N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Wec Acquisition and National Grid, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wec Acquisition 0 0 0 0 N/A
National Grid 0 6 6 0 2.50

National Grid has a consensus target price of $69.00, suggesting a potential upside of 29.24%. Given National Grid’s higher possible upside, analysts plainly believe National Grid is more favorable than Wec Acquisition.

Insider and Institutional Ownership

5.5% of National Grid shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

National Grid pays an annual dividend of $1.87 per share and has a dividend yield of 3.5%. Wec Acquisition does not pay a dividend.

Summary

National Grid beats Wec Acquisition on 5 of the 8 factors compared between the two stocks.

About Wec Acquisition

Integrys Energy Group, Inc. is an energy holding company, which provides regulated natural gas and electricity, non-regulated renewable energy, and compressed natural gas products and services. The Company operates through four segments: natural gas utility, electric utility, electric transmission investment, and holding company and other. The natural gas utility segment includes the operations of Minnesota Energy Resources Corporation, Michigan Gas Utilities Corporation, North Shore Gas Company, The Peoples Gas Light and Coke Company and Wisconsin Public Service Corporation (WPS). The electric utility segment includes the electric utility operations of WPS. The electric transmission investment segment includes its 34% interest in American Transmission Company LLC. The holding company and other segment include the operations of the Integrys Energy Group holding company, Integrys Transportation Fuels, LLC, WPS Power Development LLC and the Peoples Energy, LLC holding company.

About National Grid

National Grid plc is an electricity and gas utility company focused on transmission and distribution activities in electricity and gas in both the United Kingdom and the United States. The Company’s segments include UK Electricity Transmission, which is engaged in high voltage electricity transmission networks in Great Britain; UK Gas Transmission, which is the gas transmission network in Great Britain and United Kingdom liquefied natural gas (LNG) storage activities; UK Gas Distribution, which includes approximately four of the eight regional networks of Great Britain’s gas distribution system, and US Regulated, which includes gas distribution networks, electricity distribution networks and high voltage electricity transmission networks in New York, and New England and electricity generation facilities in New York. Its other activities relate to non-regulated businesses and other commercial operations not included within the above segments.

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