Comparing IDACORP (NYSE:IDA) & National Grid Transco (NYSE:NGG)

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

Dividends

IDACORP pays an annual dividend of $3.44 per share and has a dividend yield of 2.7%. National Grid Transco pays an annual dividend of $4.07 per share and has a dividend yield of 5.7%. IDACORP pays out 60.6% of its earnings in the form of a dividend. National Grid Transco pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDACORP has raised its dividend for 13 consecutive years.

Volatility and Risk

IDACORP has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, National Grid Transco 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 current recommendations and price targets for IDACORP and National Grid Transco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDACORP	0	3	4	0	2.57
National Grid Transco	0	3	4	1	2.75

IDACORP currently has a consensus target price of $122.8571, suggesting a potential downside of 1.93%. National Grid Transco has a consensus target price of $80.40, suggesting a potential upside of 12.61%. Given National Grid Transco’s stronger consensus rating and higher probable upside, analysts plainly believe National Grid Transco is more favorable than IDACORP.

Institutional & Insider Ownership

89.1% of IDACORP shares are held by institutional investors. Comparatively, 4.7% of National Grid Transco shares are held by institutional investors. 0.5% of IDACORP shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares IDACORP 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
IDACORP	$1.83 billion	3.71	$289.17 million	$5.68	22.06
National Grid Transco	$23.61 billion	2.96	$3.70 billion	$5.20	13.73

National Grid Transco has higher revenue and earnings than IDACORP. National Grid Transco is trading at a lower price-to-earnings ratio than IDACORP, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IDACORP	16.96%	9.18%	3.24%
National Grid Transco	N/A	N/A	N/A

Summary

IDACORP beats National Grid Transco on 10 of the 17 factors compared between the two stocks.

About IDACORP

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States. The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada. As of December 31, 2023, it had approximately 4,762 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 11 switching stations; 30 mixed-use transmission and distribution substations; 186 energized distribution substations; and 29,714 pole-miles of distribution lines, and 131 MW of battery storage, as well as provides electric utility services to approximately 633,000 retail customers in southern Idaho and eastern Oregon. The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education. It also invests in housing and other real estate tax credit investments. IDACORP, Inc. was founded in 1915 and is headquartered in Boise, Idaho.

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.