Boardwalk Pipeline Partners (NYSE: NGG) and National Grid (NYSE:NGG) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Risk and Volatility
Boardwalk Pipeline Partners has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, National Grid has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Boardwalk Pipeline Partners and National Grid, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boardwalk Pipeline Partners||1||6||3||0||2.20|
Boardwalk Pipeline Partners presently has a consensus target price of $15.56, indicating a potential upside of 29.15%. Given Boardwalk Pipeline Partners’ higher possible upside, analysts clearly believe Boardwalk Pipeline Partners is more favorable than National Grid.
Earnings & Valuation
This table compares Boardwalk Pipeline Partners and National Grid’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boardwalk Pipeline Partners||$1.32 billion||2.28||$297.00 million||$1.35||8.93|
|National Grid||$20.22 billion||1.76||$4.71 billion||$3.93||13.48|
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.
Institutional and Insider Ownership
92.6% of Boardwalk Pipeline Partners shares are held by institutional investors. Comparatively, 5.4% of National Grid shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Boardwalk Pipeline Partners and National Grid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boardwalk Pipeline Partners||21.29%||6.85%||3.65%|
Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. National Grid pays an annual dividend of $4.08 per share and has a dividend yield of 7.7%. Boardwalk Pipeline Partners pays out 29.6% of its earnings in the form of a dividend. 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 beats National Grid on 8 of the 15 factors compared between the two stocks.
About Boardwalk Pipeline Partners
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.
About National Grid
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.
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