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NGG vs SRE

NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%
SRE
Sempra
BEARISH
Price
$97.78
Market Cap
$63.88B
Sector
Utilities
AI Confidence
75%

Valuation

P/E Ratio
NGG
22.16
SRE
35.55
Forward P/E
NGG
14.7
SRE
17.68
P/B Ratio
NGG
8.96
SRE
2.02
P/S Ratio
NGG
5.09
SRE
4.66
EV/EBITDA
NGG
67.62
SRE
19.79

Profitability

Gross Margin
NGG
100.0%
SRE
41.18%
Operating Margin
NGG
24.15%
SRE
27.74%
Profit Margin
NGG
16.43%
SRE
13.4%
ROE
NGG
7.87%
SRE
5.19%
ROA
NGG
3.22%
SRE
1.77%

Growth

Revenue Growth
NGG
-11.3%
SRE
-0.2%
Earnings Growth
NGG
-12.4%
SRE
-48.2%

Financial Health

Debt/Equity
NGG
1.23
SRE
0.83
Current Ratio
NGG
0.97
SRE
1.59
Quick Ratio
NGG
0.75
SRE
0.09

Dividends

Dividend Yield
NGG
3.48%
SRE
2.71%
Payout Ratio
NGG
77.96%
SRE
93.82%

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
SRE BEARISH

SRE shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Concerns include weak profitability or high valuation.

Strengths
Strong financial trend (Piotroski F-Score: 7/9)
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($54.73)
Declining revenue (-0.2%)

Compare Another Pair

NGG vs SRE: Head-to-Head Comparison

This page compares National Grid plc (NGG) and Sempra (SRE) 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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