Enterprise Products Partners (NYSE:EPD) and National Grid (NYSE:NGG) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares Enterprise Products Partners and National Grid's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Enterprise Products Partners | $32.79 billion | 1.42 | $4.59 billion | $2.15 | 9.92 |
National Grid | $18.62 billion | 2.13 | $1.61 billion | $3.53 | 15.83 |
Enterprise Products Partners has higher revenue and earnings than National Grid. Enterprise Products Partners is trading at a lower price-to-earnings ratio than National Grid, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Enterprise Products Partners and National Grid, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Enterprise Products Partners | 0 | 0 | 14 | 1 | 3.07 |
National Grid | 0 | 5 | 7 | 0 | 2.58 |
Enterprise Products Partners currently has a consensus price target of $25.2857, suggesting a potential upside of 18.60%. Given Enterprise Products Partners' stronger consensus rating and higher possible upside, analysts plainly believe Enterprise Products Partners is more favorable than National Grid.
Profitability
This table compares Enterprise Products Partners and National Grid's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Enterprise Products Partners | 16.10% | 17.76% | 7.40% |
National Grid | N/A | N/A | N/A |
Institutional and Insider Ownership
30.5% of Enterprise Products Partners shares are owned by institutional investors. Comparatively, 4.1% of National Grid shares are owned by institutional investors. 37.5% of Enterprise Products Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Enterprise Products Partners has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, National Grid has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.
Dividends
Enterprise Products Partners pays an annual dividend of $1.80 per share and has a dividend yield of 8.4%. National Grid pays an annual dividend of $2.24 per share and has a dividend yield of 4.0%. Enterprise Products Partners pays out 83.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Grid pays out 63.5% of its earnings in the form of a dividend. Enterprise Products Partners has increased its dividend for 1 consecutive years. Enterprise Products Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Enterprise Products Partners beats National Grid on 14 of the 18 factors compared between the two stocks.