Financial Comparison: Innergex Renewable Energy (OTCMKTS:INGXF) vs. National Grid Transco (NYSE:NGG)

Innergex Renewable Energy (OTCMKTS:INGXF) and National Grid Transco (NYSE:NGG) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Dividends

Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. National Grid Transco pays an annual dividend of $2.11 per share and has a dividend yield of 2.5%. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Innergex Renewable Energy has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, National Grid Transco has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Innergex Renewable Energy and National Grid Transco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innergex Renewable Energy	0	0	0	0	0.00
National Grid Transco	2	6	3	0	2.09

National Grid Transco has a consensus price target of $83.80, suggesting a potential downside of 0.82%. Given National Grid Transco’s stronger consensus rating and higher possible upside, analysts clearly believe National Grid Transco is more favorable than Innergex Renewable Energy.

Valuation & Earnings

This table compares Innergex Renewable Energy and National Grid Transco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18
National Grid Transco	$23.61 billion	3.56	$3.70 billion	N/A	N/A

National Grid Transco has higher revenue and earnings than Innergex Renewable Energy.

Insider and Institutional Ownership

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

Profitability

This table compares Innergex Renewable Energy and National Grid Transco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innergex Renewable Energy	5.51%	5.30%	0.76%
National Grid Transco	N/A	N/A	N/A

Summary

National Grid Transco beats Innergex Renewable Energy on 9 of the 14 factors compared between the two stocks.

About Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.

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.