Comparing Power Assets (OTCMKTS:HGKGY) & National Grid Transco (NYSE:NGG)

National Grid Transco (NYSE:NGG) and Power Assets (OTCMKTS:HGKGY) are both large-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares National Grid Transco and Power Assets’ 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
Power Assets	N/A	N/A	N/A

Volatility & Risk

National Grid Transco has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Power Assets has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Institutional & Insider Ownership

4.7% of National Grid Transco shares are owned by institutional investors. 1.0% of Power Assets shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares National Grid Transco and Power Assets”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Grid Transco	$23.61 billion	3.33	$3.70 billion	N/A	N/A
Power Assets	$117.77 million	131.92	$784.46 million	N/A	N/A

National Grid Transco has higher revenue and earnings than Power Assets.

Analyst Recommendations

This is a summary of recent recommendations for National Grid Transco and Power Assets, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Grid Transco	2	5	4	0	2.18
Power Assets	0	0	0	0	0.00

National Grid Transco presently has a consensus target price of $83.80, indicating a potential upside of 5.61%. Given National Grid Transco’s stronger consensus rating and higher probable upside, equities research analysts clearly believe National Grid Transco is more favorable than Power Assets.

Dividends

National Grid Transco pays an annual dividend of $2.11 per share and has a dividend yield of 2.7%. Power Assets pays an annual dividend of $0.16 per share and has a dividend yield of 2.2%.

Summary

National Grid Transco beats Power Assets on 8 of the 10 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 Power Assets

Power Assets Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, the United Kingdom, Australia, Mainland China, and internationally. It generates energy from thermal, renewable energy, and waste sources. The company also transmits and distributes oil and gas; and provides trust administration and management services. It has a generation capacity of 879 MW renewable energy/energy from waste, 5,262 MW gas fired, and 3,567 MW coal/oil fired; and operates 114,900 km of gas/oil pipeline, as well as 388,200 km of power network serving 19,790,000 customers. The company was formerly known as Hongkong Electric Holdings Limited and changed its name to Power Assets Holdings Limited in February 2011. Power Assets Holdings Limited was founded in 1889 and is based in Central, Hong Kong.