Eversource Energy vs National Grid

Eversource Energy and National Grid are two major players in the energy sector, both providing essential services to millions of customers. Eversource Energy, a publicly traded company based in New England, has a strong track record of delivering consistent dividends and stable stock performance. On the other hand, National Grid, a UK-based multinational corporation, operates in both the United States and the UK, offering investors exposure to diverse markets and regulatory environments. Both stocks offer unique opportunities for investors looking to capitalize on the growing demand for clean and reliable energy solutions.

Eversource Energy or National Grid?

When comparing Eversource Energy and National Grid, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Eversource Energy and National Grid.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Eversource Energy has a dividend yield of 4.31%, while National Grid has a dividend yield of 4.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Eversource Energy reports a 5-year dividend growth of 5.97% year and a payout ratio of -1045.98%. On the other hand, National Grid reports a 5-year dividend growth of 2.51% year and a payout ratio of 75.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Eversource Energy P/E ratio at -252.09 and National Grid's P/E ratio at 84.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Eversource Energy P/B ratio is 1.56 while National Grid's P/B ratio is 6.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Eversource Energy has seen a 5-year revenue growth of 0.28%, while National Grid's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Eversource Energy's ROE at -0.62% and National Grid's ROE at 7.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $64.26 for Eversource Energy and $67.10 for National Grid. Over the past year, Eversource Energy's prices ranged from $52.03 to $69.01, with a yearly change of 32.64%. National Grid's prices fluctuated between $55.13 and $73.40, with a yearly change of 33.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.