National Grid Transco (NYSE:NGG – Get Free Report) and Brookfield Infrastructure (NYSE:BIPC – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Risk and Volatility
National Grid Transco has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Brookfield Infrastructure has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Profitability
This table compares National Grid Transco and Brookfield Infrastructure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Grid Transco | N/A | N/A | N/A |
| Brookfield Infrastructure | N/A | N/A | N/A |
Insider & Institutional Ownership
Dividends
National Grid Transco pays an annual dividend of $4.31 per share and has a dividend yield of 5.4%. Brookfield Infrastructure pays an annual dividend of $1.82 per share and has a dividend yield of 4.3%. Brookfield Infrastructure has increased its dividend for 5 consecutive years.
Valuation and Earnings
This table compares National Grid Transco and Brookfield Infrastructure”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Grid Transco | $23.71 billion | 3.36 | $4.34 billion | N/A | N/A |
| Brookfield Infrastructure | $3.70 billion | 1.41 | N/A | N/A | N/A |
National Grid Transco has higher revenue and earnings than Brookfield Infrastructure.
Analyst Ratings
This is a summary of recent ratings for National Grid Transco and Brookfield Infrastructure, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Grid Transco | 2 | 7 | 1 | 0 | 1.90 |
| Brookfield Infrastructure | 2 | 0 | 0 | 0 | 1.00 |
National Grid Transco presently has a consensus price target of $85.50, suggesting a potential upside of 6.89%. Brookfield Infrastructure has a consensus price target of $48.00, suggesting a potential upside of 13.56%. Given Brookfield Infrastructure’s higher probable upside, analysts clearly believe Brookfield Infrastructure is more favorable than National Grid Transco.
Summary
National Grid Transco beats Brookfield Infrastructure on 5 of the 9 factors compared between the two stocks.
About National Grid Transco
National Grid plc transmits and distributes electricity and gas. It operates through UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, New York, National Grid Ventures, and Other segments. The UK Electricity Transmission segment provides electricity transmission and construction work services in England and Wales. The UK Electricity Distribution segment offers electricity distribution services in Midlands, and South West of England and South Wales. The UK Electricity System Operator segment provides balancing services for supply and demand of electricity on Great Britain’s electricity transmission system; and acts as an agent on behalf of transmission operators. The New England segment offers electricity and gas distribution, and electricity transmission services in New England. The New York segment provides electricity and gas distribution, and electricity transmission services in New York. The National Grid Ventures segment provides transmission services through electricity interconnectors and LNG importation at the Isle of Grain, as well as sale of renewables projects. The Other segment engages in the leasing and sale of commercial property, as well as insurance activities in the United Kingdom. The company was founded in 1990 and is headquartered in London, the United Kingdom.
About Brookfield Infrastructure
Brookfield Infrastructure Corporation, together with its subsidiaries, owns and operates regulated natural gas transmission systems in Brazil. The company also engages in the regulated gas and electricity distribution operations in the United Kingdom; and electricity transmission and distribution, as well as gas distribution in Australia. It operates approximately 2,000 kilometers of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; 4.3 million gas and electricity connections; and a global fleet of approximately 7 million twenty-foot equivalent units (TEUs) intermodal containers under long-term contracts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Infrastructure Corporation operates as a subsidiary of Brookfield Infrastructure Partners L.P.
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