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HTO vs NGG

HTO
H2O America
NEUTRAL
Price
$56.19
Market Cap
$2.35B
Sector
Utilities
AI Confidence
85%
NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
HTO
19.24
NGG
22.16
Forward P/E
HTO
20.31
NGG
14.7
P/B Ratio
HTO
1.32
NGG
8.96
P/S Ratio
HTO
2.88
NGG
5.09
EV/EBITDA
HTO
13.12
NGG
67.62

Profitability

Gross Margin
HTO
56.83%
NGG
100.0%
Operating Margin
HTO
21.48%
NGG
24.15%
Profit Margin
HTO
12.87%
NGG
16.43%
ROE
HTO
6.5%
NGG
7.87%
ROA
HTO
2.35%
NGG
3.22%

Growth

Revenue Growth
HTO
9.4%
NGG
-11.3%
Earnings Growth
HTO
0.0%
NGG
-12.4%

Financial Health

Debt/Equity
HTO
1.02
NGG
1.23
Current Ratio
HTO
2.02
NGG
0.97
Quick Ratio
HTO
1.83
NGG
0.75

Dividends

Dividend Yield
HTO
3.13%
NGG
3.48%
Payout Ratio
HTO
58.22%
NGG
77.96%

AI Verdict

HTO NEUTRAL

HTO exhibits stable financial health with a Piotroski F-Score of 5/9 and a strong liquidity position (Current Ratio 2.02). However, the stock is trading at a premium to its Graham Number ($52.94) and significantly above its growth-based intrinsic value ($20.44). While the P/E is attractive relative to the utility sector average, flat year-over-year earnings growth and a high PEG ratio of 2.62 suggest limited immediate upside. Bearish technicals and recent insider selling by the CEO further temper the outlook despite a 'Strong Buy' analyst consensus.

Strengths
Strong liquidity with a Current Ratio of 2.02 and Quick Ratio of 1.83
Conservative leverage (Debt/Equity 1.02) compared to sector average (1.58)
Robust profitability margins (Gross 56.83%, Operating 21.48%)
Risks
Stagnant year-over-year earnings growth (0.00%)
High PEG ratio (2.62) indicating overvaluation relative to growth
Severe bearish technical trend (0/100)
NGG BEARISH

National Grid (NGG) presents a stark divergence between its stable operational health and its current market valuation. While the Piotroski F-Score of 5/9 indicates a stable financial condition, the stock is trading at a massive premium, with a current price of $89.54 far exceeding the Graham Number ($30.15) and Intrinsic Value ($28.28). This valuation gap is compounded by negative YoY revenue (-11.30%) and earnings growth (-12.40%), suggesting the market is pricing in growth that is not supported by current data. Despite strong operating margins, the bearish technical trend and high payout ratio signal significant downside risk.

Strengths
Strong operating margin of 24.15%, significantly outperforming the sector average
Debt/Equity ratio (1.23) is lower than the utility sector average (1.58)
Stable financial health as indicated by a Piotroski F-Score of 5/9
Risks
Severe overvaluation relative to Graham Number ($30.15) and Intrinsic Value ($28.28)
Negative YoY revenue growth (-11.30%) and earnings growth (-12.40%)
Extremely high Price-to-Book ratio of 8.96, indicating a high premium over assets

Compare Another Pair

HTO vs NGG: Head-to-Head Comparison

This page compares H2O America (HTO) and National Grid plc (NGG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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