National Grid (NGG) & Boardwalk Pipeline Partners (BWP) Head to Head Review

National Grid (NYSE: NGG) and Boardwalk Pipeline Partners (NYSE:BWP) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Insider & Institutional Ownership

5.4% of National Grid shares are held by institutional investors. Comparatively, 92.6% of Boardwalk Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares National Grid and Boardwalk Pipeline Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Grid $20.22 billion 1.75 $4.71 billion $3.93 13.40
Boardwalk Pipeline Partners $1.32 billion 2.28 $297.00 million $1.35 8.93

National Grid has higher revenue and earnings than Boardwalk Pipeline Partners. Boardwalk Pipeline 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.

Profitability

This table compares National Grid and Boardwalk Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Grid N/A N/A N/A
Boardwalk Pipeline Partners 21.29% 6.85% 3.65%

Risk & Volatility

National Grid has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Boardwalk Pipeline Partners has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for National Grid and Boardwalk Pipeline Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Grid 0 4 4 0 2.50
Boardwalk Pipeline Partners 1 6 3 0 2.20

Boardwalk Pipeline Partners has a consensus target price of $15.56, suggesting a potential upside of 29.15%. Given Boardwalk Pipeline Partners’ higher probable upside, analysts clearly believe Boardwalk Pipeline Partners is more favorable than National Grid.

Dividends

National Grid pays an annual dividend of $4.08 per share and has a dividend yield of 7.7%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. National Grid pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boardwalk Pipeline Partners pays out 29.6% of its earnings in the form of a dividend.

Summary

Boardwalk Pipeline Partners beats National Grid on 8 of the 15 factors compared between the two stocks.

National Grid Company Profile

National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, and US Regulated segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,200 kilometers of overhead lines; 1,500 kilometers of underground cables; and 346 substations located in England and Wales. It also operates the Scottish networks. The UK Gas Transmission segment owns and operates gas transmission systems that include approximately 7,660 kilometers of high pressure pipes and 24 compressor stations connecting 8 distribution networks in Great Britain. The US Regulated segment owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,293 kilometers of overhead lines; 168 kilometers of underground cables; 387 transmission substations; and 740 distribution substations. This segment also engages in owning and operating gas distribution networks in upstate New York, New York City, Long Island, Massachusetts, and Rhode Island. The company is also involved in gas metering, property management, liquefied natural gas (LNG) importation terminal, and LNG operations, as well as the operation of Great Britain-France interconnector. National Grid plc was founded in 1990 and is headquartered in London, the United Kingdom.

Boardwalk Pipeline Partners Company Profile

Boardwalk Pipeline Partners, LP, through its subsidiaries, owns and operates integrated natural gas and natural gas liquids and other hydrocarbons (NGLs) pipeline and storage systems in the United States. It operates interstate natural gas and NGLs pipeline systems, and integrated storage facilities, which are located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. The company's pipeline systems contain approximately 13,880 miles of interconnected natural gas pipelines, directly serving customers in 13 states and indirectly serving customers throughout the northeastern and southeastern United States through various interconnections with unaffiliated pipelines. It also owns and operates approximately 455 miles of NGLs pipelines serving customers in Louisiana and Texas. In addition, the company has underground storage caverns having aggregate capacity of approximately 205.0 billion cubic feet of working natural gas and 24.5 million barrels of NGLs. It serves producers of natural gas, local distribution companies, marketers, electric power generators, industrial users, and interstate and intrastate pipelines. The company was founded in 2005 and is headquartered in Houston, Texas. Boardwalk Pipeline Partners, LP is a subsidiary of Boardwalk Pipelines Holding Corp.

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