No connection

Search Results

NGG vs NJR

NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%
NJR
New Jersey Resources Corporation
NEUTRAL
Price
$56.31
Market Cap
$5.68B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
NGG
22.16
NJR
17.43
Forward P/E
NGG
14.7
NJR
16.39
P/B Ratio
NGG
8.96
NJR
2.29
P/S Ratio
NGG
5.09
NJR
2.64
EV/EBITDA
NGG
67.62
NJR
14.02

Profitability

Gross Margin
NGG
100.0%
NJR
37.1%
Operating Margin
NGG
24.15%
NJR
29.63%
Profit Margin
NGG
16.43%
NJR
15.18%
ROE
NGG
7.87%
NJR
13.66%
ROA
NGG
3.22%
NJR
4.1%

Growth

Revenue Growth
NGG
-11.3%
NJR
23.9%
Earnings Growth
NGG
-12.4%
NJR
-7.6%

Financial Health

Debt/Equity
NGG
1.23
NJR
1.61
Current Ratio
NGG
0.97
NJR
0.83
Quick Ratio
NGG
0.75
NJR
0.43

Dividends

Dividend Yield
NGG
3.48%
NJR
3.37%
Payout Ratio
NGG
77.96%
NJR
57.28%

AI Verdict

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
NJR NEUTRAL

NJR presents a dichotomy between strong operational efficiency and stretched valuation. While the Piotroski F-Score of 5/9 indicates stable financial health, the stock is trading at a significant premium to its Graham Number ($42.23) and Intrinsic Value ($22.61). Strong revenue growth is currently decoupled from earnings growth, which has turned negative YoY. Despite analyst 'buy' ratings, bearish insider activity and a weak technical trend suggest limited immediate upside.

Strengths
Superior ROE (13.66%) compared to the utility sector average (0.23%)
Strong revenue growth (23.90% YoY) indicating successful scale or rate adjustments
Healthy profit margins (15.18%) and operating margins (29.63%)
Risks
Significant overvaluation relative to deterministic fair value models
Negative earnings growth (-7.60% YoY) despite rising revenues
Liquidity concerns with a Current Ratio of 0.83 and Quick Ratio of 0.43

Compare Another Pair

NGG vs NJR: Head-to-Head Comparison

This page compares National Grid plc (NGG) and New Jersey Resources Corporation (NJR) 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.

Home
Terminal
AI Chat
Markets
Profile